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One year ago, you sold a futures contract on 100,000 euros with a settlement date of one year. Assume that one year ago, the spot
One year ago, you sold a futures contract on 100,000 euros with a settlement date of one year. Assume that one year ago, the spot rate of the euro was $1.40, the one-year forward rate exhibited a discount of 5 percent, and the one-year futures price was the same as the one- year forward rate. From one year ago to today, the euro depreciated against the dollar by 10 percent. The total dollar amount of your profit or loss is $ _______ (negative number indicates a loss). 0-7500 -7000 O 6000 O-6500 O 7000 O 7500 -6000 8000 -8000 6500
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