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.

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Definitions:

Photoreceptors

Photoreceptors are specialized cells in the retina that convert light into electrical signals, enabling the process of vision.

Cones

Photoreceptor cells in the retina of the eye that function best in bright light and enable color vision.

Dim Light

Low-intensity lighting that is not bright enough to cause full alertness and is commonly used in settings to promote relaxation.

Optic Disc

The point in the eye where the optic nerve fibers exit the retina, often referred to as the blind spot because it lacks light-sensitive cells.