Will sanibel be affected, It negotiates a 1-month forward

Will sanibel be affected

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Reference no: EM13256497

Sanibel Company purchases British goods(denominated in pounds) every month. It negotiates a 1-month forward contract at the beginning of every month to hedge its payables. Assume the British pound appreciates consistently over the next 5 years. Will Sanibel be affected? Explain.

Reference no: EM13256497

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