An investor enters into a short forward contract to sell 100,000 British pounds for U S dollars at an exchange rate of 1 5000 U S dollars per pound How much does the investor gain or lose if the exchange rate at the end of the contract is (a) 1 4900 (b) 1 5200 ...

a The investor is obligated to sell pounds for ...

An investor enters into a short forward contract to sell 100,000 British pounds for U.S. dollars at

Question:

An investor enters into a short forward contract to sell 100,000 British pounds for U.S. dollars at an of 1.5000 U.S. dollars per pound. How much does the investor gain or lose if the at the end of the contract is
(a) 1.4900
(b) 1.5200?
Exchange Rate
The value of one currency for the purpose of conversion to another. Exchange Rate means on any day, for purposes of determining the Dollar Equivalent of any currency other than Dollars, the rate at which such currency may be exchanged into Dollars...