Question
You bought 1 million 1-year CNY/MOP forward six months ago at a rate of 1.20. The current spot rate is 1.25 and the 6-month interest
You bought 1 million 1-year CNY/MOP forward six months ago at a rate of 1.20. The current spot rate is 1.25 and the 6-month interest rate for MOP is 0% per year and that for CNY is 2% per year. What is your profit on this position? Rates are continuously compounded.
a. -0.03756 million MOP
b. 0.03756 million MOP
c. 0.5 million MOP
d. 0.0625 million MOP.
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Fundamentals Of Healthcare Finance
Authors: Paula H. Song, Kristin L. Reiter
4th Edition
1640553223, 978-1640553224
