The Six-Month Forward Rate Is C$ 1

question 55

Multiple Choice

The six-month forward rate is C$ 1.00 per US$.Ahmed assumes a 1,000 long position in the forward contract and his profit in six months is C$30.00.What is the spot rate in six months?

• A)C$ 1.030 per US$
• B)C$ 1.031 per US$
• C)C$ 1.029 per US$
• D)C$ 0.970 per US$

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Definitions:

Equal Distribution

The equitable allocation of resources, benefits, or responsibilities among all members of a society or group.

Interest in Existing

The inherent value or concern accorded to the state of being alive or existence itself.

Medical Research

The scientific study aimed at understanding human health and disease, developing treatments, and improving medical care.

Organ Allocation

This refers to the process and policies used to determine how organs are distributed to patients in need of a transplant.