Question
A US-based exporter anticipated receiving 1000 British Pound (GBP) in six months, and took a short forward position, locking-in an exchange rate of $1.43/GBP. If
A US-based exporter anticipated receiving 1000 British Pound (GBP) in six months, and took a short forward position, locking-in an exchange rate of $1.43/GBP. If six months later at maturity, the spot exchange rate becomes $1.42/GBP, what is the payoff of the exporter?
Note: For all the questions regarding Payoff or Profit/Loss, 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 of 100 US Dollars, just put 100 in your final answer; if you get the payoff of -100 US Dollars, just put -100 in your final answer 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 of 100 US Dollars, just put 100 in your final answer; if you get the payoff of -100 US Dollars, just put -100 in your final answer.
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