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Suppose your company will receive payment of 15 million in three months, at which time your company will convert the British pound to Canadian dollar.
Suppose your company will receive payment of 15 million in three months, at which time your company will convert the British pound to Canadian dollar. One British pound contract calls for delivery of 62,500. Describe how you could use futures contracts to lock in an exchange rate from British pounds to CAD for your planned receipt of 15 million, and calculate how many contracts are required to do a full hedge
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