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Can someone please help with both these problem? I am not understanding On July 1, an American auto dealer enters into a contract to purchase

image text in transcribedimage text in transcribedCan someone please help with both these problem? I am not understanding

On July 1, an American auto dealer enters into a contract to purchase 20 British sports cars with payment to be made in pounds on November 1. Each car costs 35,000 pounds. The dealer is concerned that the pound will strengthen over the next few months. The dealer plans to trade in December pound futures contracts. The December pound futures price is $1.278 per pound. Each contract is for delivery of 62,500 pounds. How many contracts should the auto dealer trade in? In the above problem, the spot rate on November 1 is $1.442 per pound and the December pound futures price is $1.4375. What is the effective dollar price that the auto dealer pays per sports car after taking into account the gain or loss in the futures market

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