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A U.S. firm holds an asset in Great Britain and faces the following scenario: Where, P= Pound sterling price of the asset held by the
A U.S. firm holds an asset in Great Britain and faces the following scenario: Where, P= Pound sterling price of the asset held by the U.S. firm P= Dollar price of the same asset Which of the following would be an effective hedge? Multiple Choice Sell 2,278.13 forward at the 1-year forward rate, F1($/), that prevalls at time zero. none of the options Buy 2,500 forward at the 1 -year forward rate, F1($), that prevalls at time zero. Sell 25,000 forward at the 1-year forward rate, F1($/), that prevalls at time zero
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