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Assume that an Fl can hedge its exposure to GBP appreciation by buying 100 future contracts for GBP. The size of each future contract is

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Assume that an Fl can hedge its exposure to GBP appreciation by buying 100 future contracts for GBP. The size of each future contract is GBP62500 and the future price is USD1.77GBP. On the maturity date of the future contract, the spot rate is USD1.8/GBP. What will be the gain or loss on the hedge ? (A Gain USD625000 B Loss USD625000 (C) Gain GBP625000 D Loss GBP625000

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