American airlines hedges a pound25 million receivable by, Ask an Expert

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American Airlines hedges a £2.5 million receivable by selling pounds forward. If the spot rate is £1 = $1.73 and the 90 day forward rate is $1.7158, what is American's cost of hedging? $142,000 $35,500 $8,875 it is unknown at the time American enters into its hedge

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91771943

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