Exchange rate is currently $1.85 US per 1 British pound. Interest rate is 4% in...
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Exchange rate is currently $1.85 US per 1 British pound. Interest rate is 4% in the US and 3% in the UK. A bank is short a futures contract on 1,000,000 pounds with F= $1.9 million maturing in one year. Find the delta of the banks position.
-1,796,116.50
-970,873.79
1,900,000
1,826,923.08
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