Question
Mr. Alex takes a long position in a six-month forward contract on the euro. The forward rate is $1.70 = 1.00; the contract size is
Mr. Alex takes a long position in a six-month forward contract on the euro. The forward rate is $1.70 = 1.00; the contract size is 62,600. Mr. Alex noticed that at the maturity of the contract the spot exchange rate is $1.75 = 1.00. Does Mr. Alex gain or lose money from the position that he already took? How much he gains or lose?
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Business And The Euro Business Groups And The Politics Of EMU In Britain And Germany And The United Kingdom
Authors: Mark K. Duckenfield
1st Edition
1403998639,0230627242
