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Hedging Examples (pages 10-12) o buy) A US company will pay 10 million for imports from Britain in 3 months and decides to hedge using

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Hedging Examples (pages 10-12) o buy) A US company will pay 10 million for imports from Britain in 3 months and decides to hedge using a long position in a forward contract An investor owns 1,000 Microsoft shares currently worth $28 per share. A two-month put with a strike price of $27.50 costs $1. The investor decides to hedge by buying 10 contracts

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