What does this imply about the forward premium

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Reference no: EM131309036

Assuming interest rates in country A are normally substantially higher than interest rates in country B.

a. What does this imply about the forward premium or discount of country B's currency?

b. What does this imply about your business using forward or futures contracts to hedge your periodic profits in country B that must be converted into country A's currency?

c. Would you frequently hedge your exposure to B's currency?

Reference no: EM131309036

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