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A US - based exporter anticipated receiving 1 0 0 0 British Pound ( GBP ) in six months, and took a short forward position,
A USbased exporter anticipated receiving British PoundGBP in six months, and took a short forward position, lockingin an exchange rate of $GBP If six months later at maturity, thespot exchange rate becomes $GBPwhat is the payoff of the exporter?
Note:For all the questions regarding Payoff or ProfitLoss if you find out a positive value,then you just use the number as the answer of the question. If you find out a negative value,then you should put when you put down your answer. For instance,if you get the payoff ofUS Dollars,just putin your final answer;if you get the payoff ofUS Dollars,just putin your final answerif you find out a positive value,then you just use the number as the answer of the question. If you find out a negative value,then you should put when you put down your answer. For instance,if you get the payoff ofUS Dollars,just putin your final answer;if you get the payoff ofUS Dollars,just putin your final answer.
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