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Let's assume you're considering short selling in the currency exchange market to make money. Your friend, Tom, is willing to lend you either 5 0
Let's assume you're considering short selling in the currency exchange market to make money. Your friend, Tom, is willing to lend you either Yen, or $ with the condition that you return the money to him in one month and share of the profit from the short selling. Assuming the spot exchange rate when you borrowed the money was Yen$ you anticipate the exchange rate to be Yen$ when you return the borrowed money. Let's assume the exchange rate was Yen$ as you anticipated when you returned the borrowed money. Calculate your profit after paying of the profit you made from the short selling to Tom. Yen Yen $ $ $
Let's assume you're considering short selling in the currency exchange market to make money. Your friend, Tom, is willing to lend you either Yen, or $ with the condition that you return the money to him in one month and share of the profit from the short selling.
Assuming the spot exchange rate when you borrowed the money was Yen$ you anticipate the exchange rate to be Yen$ when you return the borrowed money. Let's assume the exchange rate was Yen$ as you anticipated when you returned the borrowed money.
Calculate your profit after paying of the profit you made from the short selling to Tom.
Yen
Yen
$
$
$
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