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Question 5 0 / 4 points A Suppose you need to pay V = 50,000 GBP in a year from now. Spot rate of GBP

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Question 5 0 / 4 points A Suppose you need to pay V = 50,000 GBP in a year from now. Spot rate of GBP is 1.3. You do not have enough USD to purchase 50,000 GBP right now. Assume the forward premium = 0.03 What is the benefit of hedging with forward contract if the GBP spot rate in a year from now is 1.2? Answer: -6500 Question 6 0 / 4 points Suppose you need to pay V = 50,000 GBP in a year from now. Spot rate of GBP is 1.3. You do not have enough USD to purchase 50,000 GBP right now. Assume the forward premium = 0.03 What is the benefit of hedging with forward contract if the GBP spot rate in a year from now is 1.3? Answer: -1500 Question 7 0 / 4 points Suppose you need to pay V = 50,000 GBP in a year from now. Spot rate of GBP is 1.3. You do not have enough USD to purchase 50,000 GBP right now. Assume the fonNard premium = 0.03 What is the benefit of hedging with forward contract if the GBP spot rate in a year from now is 1.4? Answer: 3500 n p Type here to search

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