Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
1-The current spot exchange rate is $1.55/€ and the three-month forward rate is $1.50/€. You enter into a short three-month position on €1,000. At maturity, the spot exchange rate is $1.60/€. How much money have you made or lost?
Made $150
Lost $100
Made €100
Lost $50
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