Firm to do in order to completely avoid the currency risk

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Reference no: EM131459929

A firm expects to pay $10 milliom in one year. Thr sport rate expected to prevail in one year is E($1£/$) = £0.67143/$

1. What do you suggest the firm to do in order to completely avoid the currency risk in that year? Please list your plan step by step including the actual amount.

2. What effect will actual spot rate in one year of $1£/$ = £0.77209/$ due to Brexit have on the firm?

Reference no: EM131459929

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