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Who will tend to default

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Question - On 1 February, two parties, A and B, sign a forward contract whereby A buys AUD1 million against the euro at a forward rate (EUR/AUD) of 0.6100 and with a delivery date of 30 June. Who will tend to default if the spot exchange rate on 30 June assumes the following values: 0.6400; 0.5800; and 0.6100?

Reference no: EM132980885

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