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Ernst Stavro has entered a futures contract to sell R$8 million in 60 days at R$1.449/US$. What would be the profit or loss on Ernsts

Ernst Stavro has entered a futures contract to sell R$8 million in 60 days at R$1.449/US$. What would be the profit or loss on Ernsts futures position when the spot rate is US$0.72/R$?

A. $240,000 loss

B. $24,000 loss

C. $2,400 loss

D. $24,000 gain

E. $2,400 gain

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