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swap transactions Sample An American company needs 20,000 GB pounds to invest. Investment funds will be taken back after a month. The company will exchange

swap transactions
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Sample An American company needs 20,000 GB pounds to invest. Investment funds will be taken back after a month. The company will exchange US dollars for GB pounds. To avoid foreign exchange risk, a swap transaction will be conducted. In New York foreign exchange market, Spot rate: GBP/USD: 1.5784 /90 1-month forward margi 30/20 Question How to do the swap transaction (detailed operaional pirocess) ? 2 Please calculate the final profit and loss? 3 Does this American investment company avoid the risk by conducting swap transaction

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