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Question 7 (4 points) Suppose you need to pay V = 50 000 GBP in a year from now Spot rate of GBP is 1.3.

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Question 7 (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 10 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 147

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