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The Six-Month Forward Rate Is C$ 1

question 51

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?

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Definitions:

Marginal Utility

The change in satisfaction or utility that an individual gains from consuming an additional unit of a good or service.

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Marginal Utility

The increase in happiness or usefulness experienced by a consumer when one more unit of a good or service is consumed.

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