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

question 33

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

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Definitions:

PI Filters

Electronic filters used to reduce noise and suppress ripple in power supplies by combining the filtering properties of inductors and capacitors.

T Filters

A type of electronic filter design that uses a configuration resembling the letter T, commonly used for separating different frequencies.

Filter Circuit

An electronic circuit used to remove unwanted components of a signal, such as noise, or to extract useful parts of the signal, like certain frequencies.

Opposition

In electrical terms, it usually refers to resistance or any impedance to the flow of electric current, hindering the efficient transmission of energy.