Multiple Choice
Consider a trader who takes a long position in a six-month forward contract on the euro.The forward rate is $1.75 = €1.00; the contract size is €62,500.At the maturity of the contract the spot exchange rate is $1.65 = €1.00.
A) The trader has lost $625.
B) The trader has lost $6,250.
C) The trader has made $6,250.
D) The trader has lost $66,287.88.
Correct Answer:
Verified
Correct Answer:
Verified
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