The six-month forward rate is C$ 1.00 per US$.Ahmed assumes a 1,000 long position in the forward contract and his profit in six months is C$30.00.What is the spot rate in six months?
A)C$ 1.030 per US$
B)C$ 1.031 per US$
C)C$ 1.029 per US$
D)C$ 0.970 per US$

Question

Quizplus · Accepted Answer

The profit from the forward contract is C$30.00 on a position of C$1,000, indicating that the spot rate moved in Ahmed's favor by C$0.03 per US$, making the new rate C$1.03 per US$.

The Six-Month Forward Rate Is C$ 1