Question
6. Forward hedging: As importer from UK, you will pay 100,000 GBP in 3-months. If the 3-month forward rate is 1.24 USD / GBP, describe
6. Forward hedging: As importer from UK, you will pay 100,000 GBP in 3-months. If the 3-month forward rate is 1.24 USD / GBP, describe your hedging strategy with this forward contract. How many USD will you pay by using the hedging strategy? If 3-months from now the spot rate is 1.20 USD/GBP, by using the forward contract you have made an opportunity gain/loss of how many USD? (5 points)
Hedging strategy and payment in USD:
Opportunity gain/loss calculation and answer:
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Bitcoin Cash What You Need To Know About Bch
Authors: Alexander O. M.
1st Edition
1976721229, 978-1976721229
