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A U.S. based speculator entered into a one-year forward contract to buy MXN 14mn. At the time the speculator entered the contract, the one-year forward

A U.S. based speculator entered into a one-year forward contract to buy MXN 14mn. At the time the speculator entered the contract, the one-year forward rate stood at MXN 19.294/USD. When the contract expired a year later, the spot rate was MXN 21.039/USD. Calculate the profit or loss (in USD) for the speculator.

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