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The current exchange rate on the pound is $1.60. You can invest in a risk free British government instrument that will pay 5% rate of

The current exchange rate on the pound is $1.60. You can invest in a risk free British government instrument that will pay 5% rate of return in pounds. Do you want to invest $500,000. To exactly heard the exchange rate risk in this investment, you will use a forward or futures contract for delivery of pounds of what size?

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