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

Question 18

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 (a) C$1.04 per US (b) C$1.03 per US,what will her profit (loss) be in each case?


A) - C$8.8, 1.2
B) - C$20, 2.4
C) C$17.6, - 2.4
D) - C$17.6, 2.4

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