Suppose you must repay pound 1000 in 3 monthsa why is this, Ask an Expert

Finance

Suppose you must repay pound 1,000 in 3 months.

a. Why is this a riskier proposition than owing U.S. dollars for you?

b. Suppose the direct 3-month toward FX rate for the U.K. pound is 1.25. What are your alternatives for eliminating your foreign exchange exposure?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92410321

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