Question

The spot rate is $1.45/pound and the forward rate is $1.55/pound. The interest rate in US
and Britain are expected to be 6% and 12%. Compute the net benefit of using forward
hedge if amount to be received is pound 400,000.
a. Forward hedge benefit $71,071.43
b. Forward hedge benefit pound 71,071.43
c. Forward hedge benefit $7,169.81
d. Forward hedge benefit pound 7,169.81​

Answer 1

Answer:

The joule ( jawl, jool; symbol: J) is a derived unit of energy in the International System of Units. It is equal to the energy transferred to (or work done on) an object when a force of one newton acts on that object in the direction of the force's motion through a distance of one metre (1 newton metre or N⋅m).