Currency futures have the price of 10,000 euros at $12,000 ($1.20 per euro) two years from now; Rosita just entered a contract to buy 10,000 euros from Carl in two years. If the price of a euro is actually $1.50 in two years, how much does each make or lose?
A) Carl loses $3,000 and Rosita makes $3,000.
B) Carl makes $3,000 and Rosita loses $3,000.
C) Carl loses $12,000 and Rosita makes $15,000.
D) Carl makes $12,000 and Rosita loses $15,000.

Question

Quizplus · Accepted Answer

Rosita agreed to buy euros at $1.20 each, but the market price is $1.50. She gains $0.30 per euro, totaling $3,000. Carl loses the same amount.

Currency Futures Have the Price of 10,000 Euros at $12,000