Multiple Choice
Currency futures have the price of 10,000 euros at $12,000 ($1.20 per euro) two years from now; Rosita just entered a contract to buy 10,000 euros from Carl in two years. If the price of a euro is actually $1.50 in two years, how much does each make or lose?
A) Carl loses $3,000 and Rosita makes $3,000.
B) Carl makes $3,000 and Rosita loses $3,000.
C) Carl loses $12,000 and Rosita makes $15,000.
D) Carl makes $12,000 and Rosita loses $15,000.
Correct Answer:
Verified
Correct Answer:
Verified
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