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A currency hedge fund based in the US entered into a six-month forward contract to buy BRL 14mn. At the time the hedge fund entered

A currency hedge fund based in the US entered into a six-month forward contract to buy BRL 14mn. At the time the hedge fund entered the contract, the one-year forward rate stood at BRL 3.3,463/USD. When the contract expired, the spot rate was BRL 3.567/USD. Calculate the profit or loss (in USD) for the hedge fund.

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