Question: Please show all work on how to solve this problem. Answers are also included. Barclays sells euro 500 million forward for dollars for delivery in

Please show all work on how to solve this problem. Answers are also included.

Please show all work on how to solve this problem. Answers are

Barclays sells euro 500 million forward for dollars for delivery in six months. Analyze risk that Barclays is facing and illustrate a possible solution(swap transaction) to hedge such risk using the following chart. Risk: euro appreciates against the dollar

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