Suppose you receive 2500000 british pounds not euros today, Ask an Expert

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Suppose you receive 2,500,000 British Pounds (not Euros) today and plan to convert into US dollars early next February. Which is the correct action to take today in order to hedge against GBP exchange rate risk?

A) Short 20 British Pounds futures contracts expiring in February

B) Long 20 British Pounds futures contracts expiring in March

C) Short 40 British Pounds futures contracts expiring in March

D) Long 40 British Pounds futures contracts expiring in February

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91398529

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