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assume the following 360day us interest rate =2% 360 day british interest rate 4% 360day forward rate of britsh pound 1.56 spot rate of british
assume the following
360day us interest rate =2%
360 day british interest rate 4%
360day forward rate of britsh pound 1.56
spot rate of british pound 1.52
assume that jades is a company in the us states and will need to pay 400,000 pound in 360days
.
illustrate whether jades will betteroff using hedge or money market hedge
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