Giffen Forest Products has sold lumber to the British company Bulldog Builders, with payment due six months
Question:
Giffen Forest Products has sold lumber to the British company Bulldog Builders, with payment due six months from today. The payment due is £155,000. The Canadian dollar and British pound rate is 1.5875 and the six-month C$/£ forward rate is 1.5683. Hedge this liability with a forward contract. How much will Giffen Forest Products receive in six months in Canadian dollars? How much would they have to pay today?
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The forward rate will produce Canadian 155000 15683 243087 No payment ...View the full answer
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John Kago
Am a processional practicing accountant with 5 years experience in practice, I also happens to have hands on experience in economic analysis and statistical research for 3 years. am well conversant with Accounting packages, sage, pastel, quick books, hansa world, etc, I have real work experience with Strata, and SPSS
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Related Book For 
Foundations of Financial Management
ISBN: 978-1259024979
10th Canadian edition
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
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