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Assume the Following: Current Spot Rate C$1

Question 54

Multiple Choice

Assume the following: Current Spot Rate C$1.10 per $US; Future Spot Rate C$1.1063 per $US; Forward Rate C$1.1044 per $US; Exposure $100,000 US.What are the profits in Canadian dollars of covering the long position?


A) C$110
B) C$116
C) C$114
D) C$190

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