Multiple Choice
Assume the spot exchange rate today is C$1.02 per $US,while the three-month forward rate is C$1.06 per $US.What will be the profit for an investor who takes a $US100,000 short position in the forward contract if the spot rate in three months equals 1.05?
A) C$1,000
B) - C$1,000
C) C$4,000
D) - C$4,000
Correct Answer:
Verified
Correct Answer:
Verified
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