Suppose you need to payV = 50,000 GBPin a year from now. Spot rate of GBP is

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Suppose you need to payV = 50,000 GBPin a year from now. Spot rate of GBP is 1.3. You do not have enough USD to purchase50,000 GBPright now. Assume the futurespremium = 0.03

What is the benefit of hedging with futures contract if the GBP spot rate in a year from now is 1.2?

Posted Date: May 18, 2024 04:00 AM

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Suppose you need to payV = 50,000 GBPin a year from now. Spot rate of GBP is

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