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Suppose that on 15 September 2018, you sell EUR100.000 forward for delivery on 15 January 2019. On 15 September 2018, the spot price of EUR

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Suppose that on 15 September 2018, you sell EUR100.000 forward for delivery on 15 January 2019. On 15 September 2018, the spot price of EUR is $0.95 (i.e. the exchange rate is S0.95/EUR), and the forward price for delivery 4 months later is $0.92/EUR. Then on 15 January 2019, the spot price of a EUR is $0.93 and the forward price for delivery 4 months later (i.e. for delivery on 15 May 2019) is $0.94/EUR Determine your profit and loss on the transaction

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