Consider a Trader Who Takes a Long Position in a Six-Month

question 2

Multiple Choice

Consider a trader who takes a long position in a six-month forward contract on the euro.The forward rate is $1.75 = €1.00; the contract size is €62,500.At the maturity of the contract the spot exchange rate is $1.65 = €1.00.

• A)The trader has lost $625.
• B)The trader has lost $6,250.
• C)The trader has made $6,250.
• D)The trader has lost $66,287.88.

---

Definitions:

European American Males

Refers to individuals in the United States who identify their ethnicity as European and gender as male.

Mental Health Difficulties

Challenges related to emotional, psychological, or behavioral well-being that affect an individual's daily functioning.

Shoplifting Behavior

The act of deliberately taking goods from a store without paying for them, often analyzed from psychological, social, and legal perspectives.

Suicidal Ideation

Thinking about, considering, or planning suicide.