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An importer in UK has a payable of Euro 500,000 after three months.He has collected the following information from his banker Euro/$ Spot: 1.4200/1.4210 3

An importer in UK has a payable of Euro 500,000 after three months.He has collected the following information from his banker Euro/$ Spot: 1.4200/1.4210 3 months forward: 1.4245/1.4256 3 months interest rates (p.a) Euro: 2.60% - 2.80% Pound: 3.00% - 3.20% .

Which of the following would you recommend for covering exposure through. ?

A. Forward Market

B.Money Market

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