Magdalena assumes a US$ 2,000 short position in a 1-year US forward contract
(F = C$1.0312 per US).If the spot rate in one year is C$1.03 per US, what will her profit (loss)be in each case?
A)C$1.20
B)(C$1.20)
C)(C$2.40)
D)C$2.40

Question

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The Answer of Magdalena assumes a US$ 2,000 short position in a 1-year US forward contract
(F = C$1.0312 per US).If the spot rate in one year is C$1.03 per US, what will her profit (loss)be in each case?
A)C$1.20
B)(C$1.20)
C)(C$2.40)
D)C$2.40

Magdalena Assumes a US$ 2,000 Short Position in a 1-Year