Marie has done some research and found that the spot rate is C$1.4039 per euro.Her neighbour told her that the three-month forward rate is C$1.44 per euro.If Marie assumes a 1,000 euro long position in the forward contract,what will her profit (loss)be if the spot rate in 3 months is C$1.45 per euro?
A) C$46.10
B) - C$10.00
C) C$10.00
D) C$36.10

Question

Quizplus · Accepted Answer

(S_T - F)× n = (1.45 - 1.44)1,000 = 10

Marie Has Done Some Research and Found That the Spot