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25. Assume: S = $211055, F = $1.80/ (one year), 2'5: 10% (one year), and z}: 5% (one year). If you are American exporter and

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25. Assume: S = $211055, F = $1.80/ (one year), 2'5: 10% (one year), and z}: 5% (one year). If you are American exporter and has an account receivable (A/ R) in British pounds due in one year. Which of the following is a correct strategy to hedge you're A/R? Sign a one-year forward contract to sell British pound forward. Borrow British pounds, convert to dollar, and invest in dollar for one year. Sign a one-year forward contract to sell U.S. dollar forward. Borrow U.S. dollar, convert to pounds, and invest in pounds for one year. 9-9 .cr

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