Question 2a
Marking Guide
(a)
Increased dollar cost of interest payment 1
Six-month forward market hedge 1
Six-month interest rates 1
Six-month money market hedge 1
Six-month hedging recommendation 1
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5
(a)
Increased dollar cost of interest payment 1
Six-month forward market hedge 1
Six-month interest rates 1
Six-month money market hedge 1
Six-month hedging recommendation 1
–––
5