How much does the investor gain or lose

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Reference no: EM13270529

An investor enters into a short forward contract to sell 100,000 British pounds for US dollars at an exchange rate of 1.4000 US dollars per pound. How much does the investor gain or lose if the exchange rate at the end of the contract is

(a) 1.3900 and
(b) 1.4200?
(c) Draw the investor's profit diagram on this forward.

Reference no: EM13270529

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