Solution-What factors will influence the hedging decision

What factors will influence the hedging decision

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Reference no: EM13508589

An importer has a payment of £8 million due in 90 days.

a. If the 90-day pound forward rate is $1.4201, what is the hedged cost of making that payment?
b. If the spot rate expected in 90 days is $1.4050, what is the expected cost of payment?
c. What factors will influence the hedging decision?

Reference no: EM13508589

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What factors will influence the hedging decision

Reference no: EM13508589

Reference no: EM13508589

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