How much does the investor gain or lose if the exchange, Financial Management

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How much does the investor gain or lose if the exchange

An investor entered into a short forward contract to sell 100,000 GBP for USD at an exchange rate of 1.4000 USD/GBP. How much does the investor gain or lose if the exchange rate at the end of the contract is 1.4200 USD/GBP?

A. Lost $2,000

B. Broke even (No gain or lose)

C. Gained $1,000

D. Gained $2,000

E. More information is needed

PLEASE SHOW ALL FORMULA & WORK & EXPLANATIONS -----All rates are per annum with continuous compounding unless otherwise stated

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Financial Management: How much does the investor gain or lose if the exchange

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