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A forward contact to buy US$40 000 for a planned purchase transaction of ... A forward contact to buy US$40 000 for a planned purchase

A forward contact to buy US$40 000 for a planned purchase transaction of ...

A forward contact to buy US$40 000 for a planned purchase transaction of US$50 000 has a hedge ratio of:

Select one:

40%.

80%.

20%

125%.

The answer is B but can someone please explain the steps of the answer

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