Given the futures prices below how would you go about


Suppose you expect to borrow $50 million on Sept 18, 2015 at LIBOR + 120bp. You will have to pay back the loan in three months. Today is April 16th. Given the futures prices below, how would you go about hedging your exchange rate risk and what would your net cost of borrowing be in annual percentage terms if LIBOR on Sept 18, 2013 is 6%? Maturity Price Jun ’15 95.4550 Sept ’15 95.8100 Dec ’15 96.2550

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Financial Management: Given the futures prices below how would you go about
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