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Based on the information above, answer the following questions for a hedge and no hedge scenario. Assume the bank can use options to convert GBPs
Based on the information above, answer the following questions for a hedge and no hedge scenario. Assume the bank can use options to convert GBPs at the end of the period for the off balance sheet hedge. 1. Is this bank considered to be net short or net long? What type of option would be used to hedge (call or put)
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