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180-day U.S. interest rate 180-day Fijian interest rate 180-day forward rate of Fijian dollar (F$) Spot rate of Fijian dollar

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Answer #1

Given 180 day forward rate = $0.49 /F$
The amount receivable = F$500,000

Hence the amount received if implement forward hedge = 500,000×0.49 =$245000

Answer.b. $245000

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