Multiple Choice
American Airlines hedges a £million receivable by selling pounds forward. If the spot rate is £1 = $and the 90?day forward rate is $what is American's cost of hedging?
A) $142,000
B) $35,500
C) $8,875
D) it is unknown at the time American enters into its hedge
Correct Answer:
Verified
Correct Answer:
Verified
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