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A Forward Contact to Buy US$450 000 for a Planned

question 11

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A forward contact to buy US$450 000 for a planned purchase transaction of US$600 000 has a hedge ratio of:


Definitions:

Investor

An individual or entity that allocates capital with the expectation of receiving financial returns.

Assignee

A party to whom a right or property is legally transferred.

Loan Payments

Regular payments made towards settling a loan, typically consisting of both principal and interest components.

Workers' Compensation

A form of insurance providing wage replacement and medical benefits to employees injured in the course of employment.

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