Jurassic plc, a UK business, expects to receive 500,000 in three months time for goods sold to

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Jurassic plc, a UK business, expects to receive €500,000 in three months’ time for goods sold to a French customer. It has decided to hedge the currency risk by taking out a forward contract. The following rates have been quoted:

Euro per Spot rate 1.1925-1.1985 3 months forward 1.1890-1.1897

If the forward contract is taken out, what are the sterling receipts for Jurassic plc?

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Financial Management For Decision Makers

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Authors: Peter Atrill

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Question Posted: Dec 31, 2023 12:13 AM

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Jurassic plc, a UK business, expects to receive 500,000 in three months time for goods sold to

Question:

Euro per £ Spot rate 1.1925-1.1985 3 months forward 1.1890-1.1897

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In this case Jurassic plc is ...View the full answer

Financial Management For Decision Makers

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