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Financial Risk Manager Part 1

Financial Risk Manager Part 1

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59. A French bank enters into a 6-month forward contract with an importer to sell GBP 60 million in 6 months at a rate of EUR 1.15 per GBP 1. If in 6 months the exchange rate is EUR 1.13 per GBP 1, what is the payoff for the bank from the forward contract?

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