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.The spot rate in three months will be C$2.04 per pound.What position must an investor assume in order to make a profit of $17.00?
A) Pound 13,077 short position
B) Pound 10,000 long position
C) Pound 10,000 short position
D) Pound 13,077 long position
Correct Answer:
Verified
Correct Answer:
Verified
Q5: An investor enters a short position worth
Q10: Profit from a short position in a
Q17: The dollar amount upon which a contract
Q18: Magdalena assumes a US$ 2,000 short position
Q19: David estimated a six-month forward rate of
Q21: Marie has done some research and found
Q26: Profit from a long position in a
Q27: Matthew enters into an FRA with the
Q28: Xin is selling his transformer over the
Q54: Which of the following carries storage costs?<br>A)Futures