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A dealer buys EUR 5,000,000 forward for delivery in, two months at EURO.5556/USD and simultaneously sells EUR 5,000,000 forward for delivery in three months
A dealer buys EUR 5,000,000 forward for delivery in, two months at EURO.5556/USD and simultaneously sells EUR 5,000,000 forward for delivery in three months at EURO.5545/USD. This foreign exchange transaction is equivalent to: a. buying two-months Euro forward at USD1.7999/EUR and selling three-months Euro forward at USD1.8034/EUR. b. buying three-months Euro forward at USD1.7999/EUR and selling two-months Euro forward at USD0.5545/EUR. c. selling three-months Euro forward at USD0.5556 /EUR and buying two-months Euro forward at USD1.8034/EUR. d. selling two-months Euro forward at USD1.7999/EUR and buying three-months Euro forward at USD1.8034/EUR.
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Contemporary Financial Management
Authors: James R Mcguigan, R Charles Moyer, William J Kretlow
10th Edition
978-0324289114, 0324289111
