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Assume you are a corporate customer therefore, a price taker. You need to buy EUR versus USD outright for delivery in 3 months. ANZ and
Assume you are a corporate customer therefore, a price taker. You need to buy EUR versus USD outright for delivery in 3 months. ANZ and Westpacs spot prices are 1.1515/19 and 1.1518/23 respectively. Their 3 month FX swap prices are 38/40 and 37/39, respectively. By combining the prices from both banks, the best possible available 3 month hedge rate is:
Select one: a. 1.1556
b. 1.1558
c. 1.1563 d. 1.1562 e. 1.1559
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