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The spot is E 0 . 8 0 / Y while the 1 - month forward rate is E 1 . 1 5 . You

The spot is E

0.80 /

Y while the

1 -

month forward rate is E

1.15 .

You agree to sell Y

2

million at the

1 -

month rate. Next month the spot rate is E

1.13 /

,

what are your profits

/

losses

?

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