If the spot rate expected in 90 days is 14050 what is the


An importer has a payment of £8 million due in 90 days.

a. If the 90-day pound forward rate is $1.4201, what is the hedged cost of making that payment?
b. If the spot rate expected in 90 days is $1.4050, what is the expected cost of payment?
c. What factors will influence the hedging decision?

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Cost Accounting: If the spot rate expected in 90 days is 14050 what is the
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