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Suppose ABCDE Corp. owes 1 , 0 0 0 , 0 0 0 due in 1 month, and can trade at the following quotes: Spot
Suppose ABCDE Corp. owes due in month, and can trade at the following quotes:
Spot : $month forward : $month interest rate for EUR : per annum ie per yearmonth interest rate for USD $: per annum.
How much would ABCDE Corp. need to pay using forwardrate hedging?
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