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Questions #17-19 are based on the following information: Wildstar Group (WG) is a large U.S. insurance conglomerate with operations around the world. Among other holdings,

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Questions #17-19 are based on the following information: Wildstar Group (WG) is a large U.S. insurance conglomerate with operations around the world. Among other holdings, WG owns a reinsurance subsidiary based in Switzerland and anticipates repatriating SFr 200 million in profits to the United States in June 2021. Uncertain about the future value of the Swiss franc against the USS, WG decides to hedge half of the anticipated inflow using the Swiss franc futures contract that trades on the Chicago Mercantile Exchange. The current exchange rate is 1 SFr= $1.0334 and the June 2021 futures contract is priced at $1.0563 per Swiss franc. [The CME specifies that each contract represents SFr 125,000, so a S0.0001 A in the dollar-value of the Swiss franc causes a $12.50 A in the value of a contract.] [2 pts) 19. Suppose that in June 2021 the Swiss franc has risen in value to $1.1000. What is the dollar gain or loss on the hedge acquired in #17 above? S-gain or loss (include a "+" or "-") on the currency hedge $

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