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Probiem 4 (Taking two speculative forward positons at different points in time) This year on July 1, a U.K company entered into a 3-month forward
Probiem 4 (Taking two speculative forward positons at different points in time) This year on July 1, a U.K company entered into a 3-month forward contract to sell 1million at forward price of $2.10/. Two months later, on September 1, the company entered into a 1- month forward contract to buy 1million at a forward rate of $2.05/ What profit or loss did the company have on October 1 when both the contracts matured? Problem 5 Refer to the information in problem 4 above. What total profit or loss would the company have had on the two contracts if the first contract (on July 1) was to buy lmillion and the second contract (on September 1) was to sell 1million
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