You have lent GBP 1,000,000 for 10 months (303 days) at 10.55 and borrow the same amount

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You have lent GBP 1,000,000 for 10 months (303 days) at 10.55 and borrow the same amount for four months (123 days) GBP at 11.00

a) what is your forward position?

b) how could you hedge in an FRA?

Related Book For answer-question

Business Law and the Legal Environment

ISBN: 978-1285860381

7th edition

Authors: Susan S. Samuelson, Jeffrey F. Beatty

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Posted Date: Jun 02, 2020 08:42 AM

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You have lent GBP 1,000,000 for 10 months (303 days) at 10.55 and borrow the same amount

Question:

Expert Answer:

a Your forward position is that you have bought a forward contract to bu... View the full answer

Business Law and the Legal Environment

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