Use the following information to answer the next two questions.

A bank manager believes the peso will appreciate relative to the peso in six months.The current spot rate forpesos is 10 pesos/euro and the six month forward rate is.08/peso.The manager agrees to enter into a six month forward contract with 6 million pesos attached.The spot rate is 20 pesos/euro on the day the forward contract expires.

Find the currency trader's profit/loss (in euros) from their forward contract.Round intermediate steps to four decimals and your final answer to two decimals. Do not use currency symbols or words when entering your response.

nstead of using the forward contract, suppose the manager used the spot market to trade based on his belief.What would have been his profit/loss(in euros) at the end of the six month period?

A. -60,000,000

B. 60,000,000

C. -300,000

D. 300,000

E. None of the above