Assume Perfect Foresight

Multiple Choice

Assume perfect foresight.The current spot rate is C$2.037 per British pound.The 3-month forward rate is C$2.0383 per British pound.The spot rate in three months will be C$2.04 per British pound.What position must an investor assume in order to make a profit of $17.00?

A) Pound 13,077 short position
B) Pound 10,000 long position
C) Pound 10,000 short position
D) Pound 13,077 long position