lecture 7 foreign exchange risk mngmt at the end while we convert the profit to pounds should we use the buy rate ie the smaller rate or sell ie the higher rate ? , as in this case we need to pay dollars hence buy dollars and sell pounds so shouldn’t we be using the buy rate for that convert
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lecture 7 foreign exchange risk management
3y ago#1The profit is in dollars and so to convert to pounds we need to sell dollars and buy pounds.
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