Question
The one year ahead forward rate for pesos is 7.05 pesos per dollar. What is the profit made (in dollars) if an investor agrees to
The one year ahead forward rate for pesos is 7.05 pesos per dollar. What is the profit made (in dollars) if an investor agrees to buy 10,000 pesos at the forward rate and the future spot rate after a year turns out to be 7.15 pesos per dollar?
| $17.99 | ||
| $18.22 | ||
| $18.75 | ||
| $19.84 |
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