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  3. calculate: (a) the hedged amount under a 1:4 fra

Calculate: (a) the hedged amount under a 1:4 FRA at 4.15% p.a. on...

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Finance

Calculate:

(a) the hedged amount under a 1:4 FRA at 4.15% p.a. on a nominal amount of $120 million. (6 marks)

(b) the settlement payment if the spot rate in one month is 4.05% p.a. (6 marks)

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