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Use the Following Information to Answer This Question \bullet Current Spot Rate C$1

Question 32

Multiple Choice

Use the following information to answer this question:
\bullet Current Spot Rate C$1.10 per $US
\bullet Future Spot Rate C$1.1063 per $US
\bullet Forward Rate C$1.1044 per $US
\bullet Exposure $100,000 US.
What is the profit in Canadian dollars of covering the long position?


A) C$110
B) C$116
C) C$114
D) C$190

Correct Answer:

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