What is there to lose by waiting three months to see

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Question - The XYZ Company is planning to serve a professional football team which is planning to play an exhibition game in the United Kingdom next year. Assume that all expenses will be paid by the British government and that the team will receive a check for 1 million pounds. The team anticipates that the pound will depreciate substantially by the scheduled date of the game. In addition, the National Football League must approve the deal, and approval (or disapproval) will not occur for three months.

1) How can the XYZ Company help the team to hedge its position?

2) What is there to lose by waiting three months to see if the exhibition game is approved before hedging?

Reference no: EM133170955

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