1. avatar says

    Hello John! Trying to understand where the deposit came from! Is it that instead of paying the money early (they had the money in hand) it was deposited to earn an interest? In step (2) was the conversion purely theoretical to ascertain the present value of the deposit converted into pounds and then that amount is borrowed now for 3 mths in pounds. In 3 months the $ deposit matures to 8 m and this is used to pay debt! What about the amount borrowed in pounds?

  2. avatar says

    In the middle of the Lecture, the person starts discussing a exam question on Money Market Hedge and Forwards, does anyone know where does he get that question from? I couldn’t find it in the relevant class notes.


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