STEP: $2$ of $3$

Suppose that you are a currency speculator, based in the U$.$S$.,$ attempting to capitalize on a possible depreciation of the Canadian dollar $($C$$).$ On

January $1$ st$,$ the spot rate for the Canadian dollar is $$0\mathrm{.}62.$ This is also the price at which futures contracts for Canadian dollars are being sold. You

have $C$$$320,000\mathrm{.}00$ to use on these positions.

Suppose that on February $10$th$,$ the Canadian dollar depreciates $($as you speculated$)$ to $$0\mathrm{.}56$ in the spot market.

In order to purchase $C$$$320,000\mathrm{.}00$ in spot market, you will need

$($U$.$S$.$ dollars$)$ for the exchange.

TOTAL SCORE: $\frac{1}{3}$

$($to complete this step and unlock the next step$)$