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Kenyan express limited has borrowed a loan amounting of ksh 100million where the interest rate at the date of borrowing is 20%.the loan is to
Kenyan express limited has borrowed a loan amounting of ksh 100million where the interest rate at the date of borrowing is 20%.the loan is to be paid after 6 months when the interest rate is expected to rise to 30%.to avoid a possible loss, the company has bought future contracts at a contract size of ksh 200 000 at a contract price of ksh 2000 each. The exercise period is 6 months
required
establish a hedging efficiency for the company
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