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:

Social Incompetence

A lack of skill or ability in navigating social interactions effectively, often resulting in difficulties in forming and maintaining relationships.

Malicious

Characterized by a desire to cause harm or suffering; deliberately harmful or spiteful behavior.

Relational Aggression

A type of aggression focused on harming others through manipulation or damage to relationships and social status, rather than physical harm.

Overt Aggression

Direct, openly hostile behaviors intended to harm others physically or psychologically, distinguished from more subtle forms like passive aggression.