Suppose the one month rate of interest is 6 what is the, Financial Management

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Suppose the one month rate of interest is 6 what is the

An Australian investor holds a one month short forward position on USD. The contract calls for the investor to sell USD 2 million in one months at a delivery price of $1.61 per USD. The current forward price for delivery in one month is F= $1.5850 per USD. Suppose the one month rate of interest is 6%. What is the value of the investor’s position?

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Financial Management: Suppose the one month rate of interest is 6 what is the

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