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You invest in 5 million in British bonds paying 10% interest that will mature in 1 year. You are afraid that $ will become stronger
You invest in 5 million in British bonds paying 10% interest that will mature in 1 year. You are afraid that $ will become stronger in the future against the . The futures price is 1 = $1.60. How can you hedge against exchange rate risk using futures? I contract is for 62,500. O buy 55 contracts O buy 80 contracts O buy 88 contracts O sell 88 contracts O sell 80 contracts O sell 55 contracts
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