You have a view that the Singapore Dollar (SGD) will weaken relative to the AUD. The spot exchange rate is SGD 1.00 = AUD 1.0204 (i.e., AUD 1.00 = SGD 0.9800). You will speculate on the SGD weakening using a forward contract denominated in AUD. Which position will profit from a weakening SGD?

Select one:

Long forward contract to buy AUD.

Short forward contract to sell AUD.

Question 4 You have a view that the Singapore Dollar (SGD) will weaken relative to the AUD. The spot exchange rate is SGD 1.00 = AUD 1.0204 (i.e., AUD 1.00 = SGD 0.9800). Not yet answered You will speculate on the SGD weakening using a forward contract denominated in AUD. Which position will profit from a weakening SGD? Marked out of 1.00 Select one: P Flag question O Long forward contract to buy AUD. O Short forward contract to sell AUD. Previous page Next page Announcements Jump to... Mid-semester test FAQs