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4. Estimate the expected profit or loss if an investor sold a one-year futures contract today on one million Canadian dollars and settled this contract
4. Estimate the expected profit or loss if an investor sold a one-year futures contract today on one million Canadian dollars and settled this contract on the settlement date. Information for the contract is as follows: PPP exists Canadian inflation next year expected to be 3 percent United States inflation next year expected to be 8 percent Spot rate for Canadian dollar is $0.90 One year futures contract for Canadian dollar is priced at $0.87
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