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Suppose a Ghanaian company, NFC Ltd, exported goods to MNP Ltd, a Togolese company and bailed CFA 10 million payable in one year. The money

Suppose a Ghanaian company, NFC Ltd, exported goods to MNP Ltd, a Togolese company and bailed CFA 10 million payable in one year. The money market rates a foreign exchange rates are spot rate GHS2.5/CFA, forward rate GHS2.70/CFA, money market rate Ghana 10% per annum, Togo 12% per annum. Describe how NFC Ltd can use forward contract to hedge its exposure

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