Question
The Euro is currently worth 35 UAH in Ukraine currency. (April, 10) However, the investor believes that in a month, the Euro will be worth
The Euro is currently worth 35 UAH in Ukraine currency. (April, 10) However, the investor believes that in a month, the Euro will be worth 38 UAH in Ukraine currency. Thus, investor would change 200,000 UAH for Euro. In a month (May,10), Euro is worth 40 UAH, then the portfolio investor can trade back to UAH at the new exchange rate.
Calculate the investor's profit (loss) from the exchange rate difference.
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The Social Profit Handbook
Authors: David Grant
1st Edition
1603586040, 978-1603586047
