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Magdalena Assumes a US$ 2,000 Short Position in a 1-Year

Question 25

Multiple Choice

Magdalena assumes a US$ 2,000 short position in a 1-year US forward contract
(F = C$1.0312 per US) .If the spot rate in one year is C$1.04 per US what will her profit (loss) ?


A) (C$8.80)
B) (C$20.00)
C) C$17.64
D) (C$17.64)

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