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Suppose now that the investor wishes to hedge exchange rate risk and shorts a futures contract for the amount of 5,000 at a price of

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Suppose now that the investor wishes to hedge exchange rate risk and shorts a futures contract for the amount of 5,000 at a price of $210/. Calculate to profit or loss of the futures position in each scenario (Enter only numbers, without any separators such as a dot or a comma. Profits should be indicated by positive numbers, losses should be indicated by negative numbers.) Futures P&L at Given Exchange Rate Exchange Rate: $1.8016 $2.00/ $2 20/5 IS S $ Calculate the total portfolio (stock plus futures) dollar-denominated return in each scenario. (Round your answers to 2 decimal places. Negative amounts should be indicated by a minus sign.) Price per Share (0) Exchange Rate: % Rate of Return at Given Exchange Rate $1.80 $2.001 $2.2016 % % 5. % 5 % E E E 35 40 nim 96 % 45

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