Consider the Following: Assume the Current Market Futures Price

Multiple Choice

Consider the following: Assume the current market futures price is 1.66 CAD$/$.You borrow 167,000 CAD$, convert the proceeds to U.S.dollars, and invest them in the U.S.at the risk-free rate.You simultaneously enter a contract to purchase 170,340 CAD$ at the current futures price (maturity of 1 year) .What would be your profit (loss) ?

A) Profit of 630 CAD$
B) Loss of 2300 CAD$
C) Profit of 2300 CAD$
D) Loss of 630 CAD$