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An investor sells 1,000,000 British pounds for US dollars at an exchange rate of US$1.4100 per British pound. How much in US dollars, does the investor gain or lose if the exchange rate at the end of the contract is 1.4000 and 1.4300?
Insert a "-" sign in front of the number for loss and "+" for gain. No cents. So if the answer is a loss of$5,000, answer as -5000 or -5,000
Hint: multiply out. How many dollars in each situation. Remember you SOLD Pounds buy USD.
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