How much does the investor gain or lose

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

Questions Cloud

Explain the amount of heat transferred from the water : A 486 mL sample of water was cooled from 50.0°C to 10.0°C. Assuming a specific heat of 4.184 J/K g and a density of 1.00 g/mL, find the amount of heat transferred from the water to the surroundings.

Determine the output y if the input to the system is given : Determine the output y(t) if the input to the system is given by x(t) = u(t) - u(t-2) using complex-domain (not time-domain) analysis techniques.

Calculate the maximum doppler shift seen at x-band : An interplanetary spacecraft far beyond Earth's orbit communicates with an equatorial ground station on the Earth. Calculate the maximum Doppler shift seen at X-band (8.4 GHz) due just to the Earth's revolution around the Sun and Earth's rotation ..

The hypothetical metal has a face-centered cubic unit cell : A hypothetical metal has a face-centered cubic unit cell with the edge length of 4.566 Å. Calculate the radius of the metal atom.

How much does the investor gain or lose : 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.

What minimum tracking bandwidth must tdrs receiver possess : What minimum tracking bandwidth must the TDRS receiver possess in order to accommodate the Doppler effect (Hint: you need to include both the velocity of the LEO satellite and the velocity of the GEO satellite. To the LEO satellite, the GEO satell..

Compute the radius of the metal atom : A hypothetical metal has a simple cubic unit cell with the edge length of 4.123 Å. Calculate the radius of the metal atom.

What is the compound growth rate of dividends : Assume a retention ratio of 0.45 and a historical return on equity (ROE) of 0.18. Using these two additional pieces of information, calculate an alternative estimate of dividend growth rate, g.

What are the differences in integrator and differentiators : What are the similarities and differences between the integrator and differentiator. What is a practical application where you would use an integrator or a differentiator.

User Account

All Pages