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Calculate the p&l in gbp

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Reference no: EM133072231

A British investor decides to buy the Orange stock for an amount of 10 Million GBP. The EUR/GBP trades at 0,8637 and the Orange stock at 14 Euros.

1. How many stocks can he buy?

2. Calculate the P&L in GBP if the investor hedges his currency exposure through an Fx Forward: EUR 6 months rates: -0,4%, GBP 6 months rates: +0,85%

Please describe the trade to implement

Reference no: EM133072231

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