An American currency speculator feels strongly that the value of the Canadian dollar is going to fall relative to the U.S. dollar over the short run. If he wants to profit from these expectations, what kind of position (long or short) should he take in Canadian dollar futures contracts? How much money would he make from each contract if Canadian dollar futures contracts moved from an initial quote of 0.6793 (US dollars per Canadian dollar) to an ending quote of 0.6281?

If the speculator wants to profit on a decline in the value of the Canadian dollar, he should -------

---Take a long position in OR Short ---- Canadian dollar futures contracts.