Question
Suppose that you are a currency speculator, based in the U.S., attempting to capitalize on a possible depreciation of the Canadian dollar (C$). On January
Suppose that you are a currency speculator, based in the U.S., attempting to capitalize on a possible depreciation of the Canadian dollar (C$). On January 1st, the spot rate for the Canadian dollar is $0.47. This is also the price at which futures contracts for Canadian dollars are being sold. You have C$360,000.00 to use on these positions. In the previous parts of this question, your sold a futures contract for Canadian dollars that will let you receive $169,200.00 for (C$360,000.00) on March 10th. When the Canadian dollar depreciated to $0.46 you purchased C$360,000.00 for $165,600.00 on February 10th. In total, after the futures contract you sold settles, you will have (Accrued a Gain or Incurred a Loss?) from these positions totaling ______$
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