Suntharee Lhaopadchan is a Thai student who is planning a one-year stay in the United Kingdom. She
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Suntharee Lhaopadchan is a Thai student who is planning a one-year stay in the United Kingdom. She expects to arrive in the United Kingdom in 8 months. She is worried about depreciation in the Thai baht relative to the British pound over the next 8 months and wishes to take a position in foreign exchange futures to hedge this risk. What should Miss Lhaopadchan’s hedging position be? Assume the exchange rate between the baht and sterling is quoted as baht/pound.
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Corporate Finance
ISBN: 9780077173630
3rd Edition
Authors: David Hillier, Stephen A. Ross, Randolph W. Westerfield, Bradford D. Jordan, Jeffrey F. Jaffe
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