Use the following information to answer this question:
Current Spot Rate C$1.10 per $US
Future Spot Rate C$1.1063 per $US
Forward Rate C$1.1044 per $US
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:
Verified
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