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You have to make a 9 0 , 0 0 0 , 0 0 0 payment in Japanese Yen on the close of business day,
You have to make a payment in Japanese Yen on the close of business
day, Friday, January You decide to hedge your risk with futures contracts.
Assume that you enter into the futures position at the close of day on Tuesday,
January Futures and spot data are provided in the file HWdata.doc. The
contract size is yen.
a Describe the position you decide to enter long or short
b Describe the contract what month, and what quantity
c Document the gain or loss due to marking to market every day that your position
is open.
d What is the total cost in US$ after you have closed out your futures positions, and
made your payment?
e What would have been the total cost in US$ if you had not hedged? Did you
benefit from hedging?
f Repeat steps a e assuming that you expect a payment of British
pounds on close of business day, Friday, January Assume that you enter into
the futures position at the close of day on Tuesday, January Futures and spot
data are provided in the file HWdata.doc. The contract size is British
pounds.Daily Settlements for Japanese Yen Future FINALTrade Date: Wednesday,
Daily Settlements for Japanese Yen Futures FINALTrade Date: Friday,
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