Assume the Following: Current Spot Rate C$1

question 54

Multiple Choice

Assume the following: Current Spot Rate C$1.10 per $US; Future Spot Rate C$1.1063 per $US; Forward Rate C$1.1044 per $US; Exposure $100,000 US.What are the profits in Canadian dollars of covering the long position?

• A) C$110
• B) C$116
• C) C$114
• D) C$190

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Definitions:

Children Under 15

A demographic group defined by individuals who are 14 years old or younger.

Paris Commune

A radical socialist and revolutionary government that briefly ruled Paris from March to May 1871, following France's defeat in the Franco-Prussian War.

Opium War

A series of mid-19th century conflicts between the Qing Dynasty of China and the British Empire over trade imbalances and the illegal opium trade.