Chapter 17 Foreign Exchange Risk

D £134,318 31. Polaris plc, a UK-based business, has recently exported antique furniture to a US customer and is due to be paid $500,000 in three months’ time. To hedge against foreign exchange risk, Polaris plc has entered into a forward contract to sell $500,000 in three months’ time. The relevant exchange rates are as follows: Spot £1 ... ................
................