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Suppose that your firm is considering committing to a major sale of goods in Great Britain. The sale is denominated in pounds and the pound
Suppose that your firm is considering committing to a major sale of goods in Great Britain. The sale is denominated in pounds and the pound price will be set now, but your firm won't receive payment for 6 months. What are the risks to your firm? If the sale is for 1 million pounds calculate the dollar proceeds for the firm if the sale is hedged with a 6 month forward contract.
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