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Question 30 (Bonus 5): Assume that your company expects to receive a GBP 2,000,000 payment one year from now. The one-year actual forward rate of

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Question 30 (Bonus 5): Assume that your company expects to receive a GBP 2,000,000 payment one year from now. The one-year actual forward rate of the USD/GBP is FD the synthetic one-year forward is SD/GBP 1.46. Which of the following statements is co Statement A: You can hedge this natural short position in GBP by entering a one-year long forward GBP contract. tatement B: Given the information above you should hedge your position with a money market hedge instead of an actual one-year short forward GBP contract a) Only Statement A is correct b) Only Statement B is correct c) Both statements are correct d) Both statements are wrong

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