Question
You are an arbitrageur in London. Swiss francs are currently selling in London for U.S. $0.67. You anticipate they will be selling for U.S. $0.70
You are an arbitrageur in London. Swiss francs are currently selling in London for U.S. $0.67. You anticipate they will be selling for U.S. $0.70 in 30 days. You purchase $1 million worth of francs on the spot market.
Eplain what you can do to hedge your bet by analyzing steps you will take to avoid losing all your money should the value of the franc decrease.
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The Economics And Finance Of Professional Team Sports
Authors: Daniel Plumley, Rob Wilson
1st Edition
0367655667, 978-0367655662
