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A U.S. company will need 125,000 in June next year to pay for British imports. Today a June pound futures contract is available at $1.35/.

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A U.S. company will need 125,000 in June next year to pay for British imports. Today a June pound futures contract is available at $1.35/. To hedge the exchange rate risk, the company should take a position in case the pound long; appreciates against the dollar long; depreciates against the dollar short; appreciates against the dollar short; depreciates against the dollar Previous Page Next Page Page 5 of 10

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