The current spot exchange rate is $1.55/€ and the three-month forward rate is $1.50/€. You enter into a short position on €1,000. At maturity, the spot exchange rate is $1.60/€. How much have you made or lost? A. Lost $100 B. Made €100 C. Made $150 D. Lost $50
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Ответ:
A. Lost $100
Explanation:
Short position refers to a trading technique which involves selling the currency for it to buy later and make a profit.
To calculate the loss if you don't have a forward contract:
Your loss will be
= €1,000 x ($1.50/€ - $1.60/€)
= $100
Ответ:
Answer is A. Lost $100.
Refer below for the explanation.
Explanation:
Short position includes selling the money.
You will get (1.5 × 1,000) = $1,500.
In any case, you could get (1.6 × 1,000) = $1,600
In the event that you didn't have the forward agreement.
So you lost $1,600 - $1,500 = $100.
Ответ:
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