The current spot exchange rate is $1.22/€ and the three-month forward rate is $1.30/€. You enter into a short position on €1,000. At maturity, the spot exchange rate is $1.50/€. How much have you made...


The current spot exchange rate is $1.22/€ and the three-month forward rate is $1.30/€. You<br>enter into a short position on €1,000. At maturity, the spot exchange rate is $1.50/€. How<br>much have you made or lost?<br>A. Lost $200<br>B. Made €200<br>C. Made $80<br>D. Made $200<br>

Extracted text: The current spot exchange rate is $1.22/€ and the three-month forward rate is $1.30/€. You enter into a short position on €1,000. At maturity, the spot exchange rate is $1.50/€. How much have you made or lost? A. Lost $200 B. Made €200 C. Made $80 D. Made $200

Jun 11, 2022
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