Question
1.A firm is exporting products to England, the last shipment is sent today. The English firm will pay to the U.S. firm 2 MM [GBP]
1.A firm is exporting products to England, the last shipment is sent today. The English firm will pay to the U.S. firm 2 MM [GBP] in December 2016 (in three months). The interest rate in England is 0.22 % per year. Find the spot, futures, and the interest rate in the US to decide if the firm should enter into a futures contract or do a synthetic forward.
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Technical Analysis The Complete Resource for Financial Market Technicians
Authors: Charles D. Kirkpatrick, Julie R. Dahlquist
1st edition
134137043, 134137049, 978-0131531130
