A US company expects to receive 2million sterling at the end of March. Today's date is January
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A US company expects to receive 2million sterling at the end of March. Today's date is January 2nd and futures price today is 1.30 dollar per sterling. If the spot and futures price when the contract is closed out are 1.32 dollar and 1.35 dollar per sterling, respectively, what is the effective price per sterling obtained for this US company?
Expert Answer:
The effective price per sterling for the US company can be calculated by adding the profitloss from ... View the full answer
Related Book For 
Corporate Finance Principles And Practice
ISBN: 9781292450940
9th Edition
Authors: Denzil Watson, Antony Head
Posted Date:
