22-119 What Should Be the Trading Price of the BP

question 117

Multiple Choice

22-119 What should be the trading price of the BP futures contract at the end of the year in order for the FI to be perfectly hedged? That is,the FI earns its original anticipated spread without any effects of exchange rate changes?

• A)$1.60/£.
• B)$1.61/£.
• C)$1.62/£.
• D)$1.63/£..
• E)$1.64/£.

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