Question: Problem 1 :A U . S . firm owes 1 , 0 0 0 , 0 0 0 in 9 0 days. Spot rate =

Problem 1:A U.S. firm owes 1,000,000 in 90 days. Spot rate = $1.30/, forward rate = $1.28/.Interest rate =2%(U.K.),3%(U.S.). Compare forward and money market hedge.

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