Analyze risk that the dealer is facing and provide a, Financial Management

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Analyze risk that the dealer is facing and provide a

The three-month interest rate is 3% for the dollar and is 5% for the British pound. The current spot rate is $1.5556/. A dealer sells 20,000,000 forward for dollars for delivery in three months. Analyze risk that the dealer is facing and provide a possible solution to hedge such risk. What would be the forward rate the dealer asks for?

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