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Assume the Spot Exchange Rate Today Is C$1

question 16

Multiple Choice

Assume the spot exchange rate today is C$1.02 per $US, while the three-month forward rate is C$1.06 per $US.What will be the profit (loss) for an investor who takes a US $100,000 short position in the forward contract if the spot rate in three months equals 1.05?

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Semantic Network

A conceptual structure used in cognitive psychology and artificial intelligence which represents semantic relations between concepts in a network.

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Points in a network or system where lines or pathways intersect or branch.

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Highly detailed, exceptionally vivid 'snapshot' of the moment and circumstances in which a piece of surprising and consequential (or emotionally arousing) news was heard.

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