Question 4a
Marking Guide
(a) Calculation of net US$ receipt 1
Money market hedge 2
Futures
Buy futures 1
Predicted futures rate based on basis reduction 2
Expected receipt 1
Number of contracts 1
Conclusion 1–2
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Max 9
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(a) Calculation of net US$ receipt 1
Money market hedge 2
Futures
Buy futures 1
Predicted futures rate based on basis reduction 2
Expected receipt 1
Number of contracts 1
Conclusion 1–2
––––
Max 9
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