A bank customer will be going to London in June to purchase 100,000 in new inventory The current spot and futures exchange rates are as follows The customer enters into a position in June futures to fully hedge her position When June arrives, the actual exchange rate is $1 725 per pound How much di...

To calculate how much the bank customer saved by entering into a futures contract to hedge her posit ...

A bank customer will be going to London in June to purchase 100,000 in new inventory. The

Question:

A bank customer will be going to London in June to purchase £100,000 in new inventory. The current spot and futures exchange rates are as follows: image text in transcribed

The customer enters into a position in June futures to fully hedge her position. When June arrives, the actual exchange rate is $1.725 per pound. How much did she save?

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