Question 3b
Marking Guide
(b) Dollar cost of forward market hedge 1
Calculation of six-month interest rates 1
Use of correct spot rate 1
Dollar cost of money market hedge 2
Comparison of cost of hedges 1
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6
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(b) Dollar cost of forward market hedge 1
Calculation of six-month interest rates 1
Use of correct spot rate 1
Dollar cost of money market hedge 2
Comparison of cost of hedges 1
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6
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