Consider a trader who takes a long position in a six-month


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. Find the trader's profit/loss.

a. 625

b. -625

c. 6250

d. -6250

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Financial Management: Consider a trader who takes a long position in a six-month
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