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A British investor decides to buy the Orange stock for an amount of 10 Million GBP. The EUR/GBP trades at 0,8637 and the Orange
A British investor decides to buy the Orange stock for an amount of 10 Million GBP. The EUR/GBP trades at 0,8637 and the Orange stock at 14 Euros. 1. How many stocks can he buy? 2.Calculate the P&L in GBP after 6 months if Orange trades at 15,4 Euros and the EUR/GBP at 0,7851. 3.Calculate the P&L in GBP if the investor hedges his currency exposure through an Fx Forward: EUR 6 months rates: -0,4%, GBP 6 months rates: +0,85% Please describe the trade to implement
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