Question
The current spot exchange rate is $1.8350/ and the three-month forward rate is $1.8662/. You enter into a long position on 130,000. At maturity, the
The current spot exchange rate is $1.8350/ and the three-month forward rate is $1.8662/. You enter into a long position on 130,000. At maturity, the spot exchange rate is $1.8867/. How much have you made or lost?
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Introduction to Finance Markets, Investments and Financial Management
Authors: Ronald W. Melicher, Edgar A. Norton
16th edition
1119398282, 978-1-119-3211, 1119321115, 978-1119398288
