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A US exporter will collect 1 million pound from a British company in 30 days. The 30-day pound forward rate is $1.45. a) If the

A US exporter will collect 1 million pound from a British company in 30 days. The 30-day pound forward rate is $1.45.

a) If the US exporter decides to use a forward contract to hedge the transaction so that there is no uncertainty about the dollar payment, should the exporter buy or sell the forward contract? Why?

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