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I have 10 000 CAD and I believe the USD will appreciate against the CAD in the near future. At t=0 (today) I exchange my
I have 10 000 CAD and I believe the USD will appreciate against the CAD in the near future.
- At t=0 (today)
- I exchange my CAD for USD at the rate of 1.40 CAD/USD
- At t>0 (at a later date)
- I exchange my USD for CAD, ideally at a (higher/lower?) CAD/USD rate.
- If it ends up at 1.45 CAD/USD, I realize a (profit/loss?).
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Fundamentals Of Corporate Finance
Authors: Berk, Peter DeMarzo, Jarrad Harford
3rd Global Edition
1292018402, 9781292018409
