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dAn investor enters into a short 1 months forward contract to sell 1 0 0 , 0 0 0 British pounds for US dollars. Use
dAn investor enters into a short months forward contract to sell British pounds for US dollars. Use the rates in the table to indicate what position the investor will take and calculate the gainloss of the transaction.
Table Spot and forward quotes of the USDGBP exchange rate
tableMaturityBid,OfferSpotmonth forward,month forward,year forward,
If the exchange rate at the end of the contract is the investor is obligated to pounds.
If the exchange rate at the end of the contract is the investor will invest in pounds at a price of when they are worth Enter to decimal places eg
The investor will make a
The gainloss of the transaction is $ Enter dollar value eg
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