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Short hedge Today is March 1. A US company expects to get 50 million Japanese yen at the end of July. Contract size=12.5 million
Short hedge Today is March 1. A US company expects to get 50 million Japanese yen at the end of July. Contract size=12.5 million yen Future price (September) on March 1= 0.7800 cents/yen Company enters September Future. In July when the Yen is received the spot and futures price are 0.7200 and 0.7250 cents/Yen respectively. Payoff?
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Foundations of Financial Management
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen
14th edition
007745443X, 978-0073530727, 73530727, 978-0077454432
