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Please answer the following questions in no less than 100 words:

What is the statistical interpretation of the expected future spot rate?

The cash manager of a U.S. company needs to buy 1,000,000 British pounds to pay a British supplier. A foreign currency broker quotes her a bid-ask rate of £.4865-.5116/US$. What will be the dollar cost of the 1,000,000 pounds?

Partial credit will be awarded if you show your work and/or provide an explanation on how your answer is derived.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92087044

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