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Based on the information in the table below, what is the proper financial hedging strategy with forwards? A.) We sell ____?_____ forward at the 1-year

  1. Based on the information in the table below, what is the proper financial hedging strategy with forwards?

A.) image text in transcribed

We sell ____?_____ forward at the 1-year forward rate of ___?_____

State P* Probability 1/3 1 990 S $1.357 $1.50/ 2 1/3 1,200 1,450 3 1/3 $1.65/ State P* Probability 1/3 1 990 S $1.357 $1.50/ 2 1/3 1,200 1,450 3 1/3 $1.65/

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