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anyone know how to do it? thanks Question 19 (5 points) Consider a US company, GateCorp, that exports products to the United Kingdom. GateCorp has
anyone know how to do it? thanks
Question 19 (5 points) Consider a US company, GateCorp, that exports products to the United Kingdom. GateCorp has just closed a sale worth 300,000,000. The amount will be received in three months. Because it will be paid in pounds, the US company bears the exchange risk. In order to hedge this risk, GateCorp intends to use a forward contract that is priced at $1.3872 per pound. Indicate how the company would go about constructing the hedge. How much exposure do they need and is it long or short? Long $138,720,000 worth of currency futures on the pound Short $416,160,000 worth of currency futures on the pound Long $416,160,000 worth of currency futures on the poundStep by Step Solution
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