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Question Ne 5. Mr. Abdullah is a forex trader. You are taking a short position in OMR future contract on 1 February 2020 that will

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Question Ne 5. Mr. Abdullah is a forex trader. You are taking a short position in OMR future contract on 1 February 2020 that will mature after 6 days OMR65000. The agreed upon price will be the spot rate as on 1 February 2020 between GBP to OMR 0.47799 GBP. On 1 February evening the GBP depreciates by 1% to OMR. On 2 February again GBP appreciates by 15. On 3 February GBP appreciates by 2%. In the next two days OMR appreciated by 3% and in the next two days GBP depreciated by 1 %. You are required to prepare the daily settlement process and calculate the investors profit or loss and explain the type of risk faced by this dealer in relation to the above case in your own words (1+1+1+1+1+1+3=10 Marks)

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