A trader enters into a forward contract to short 100


A trader enters into a forward contract to short 100 million yen. The current spot rate is $0.0080/yen. The forward exchange rate is $0.0085/yen. Suppose at maturity, the spot exchange rate is $0.0080/yen. What is the trader's profit?

Request for Solution File

Ask an Expert for Answer!!
Business Economics: A trader enters into a forward contract to short 100
Reference No:- TGS01285277

Expected delivery within 24 Hours