On July 1, 2009, a U.S. company enters into a forward contract to buy 1 million Swiss Francs on January 1, 2010; the forward price is $0.95/SF.  On September 1, 2009, it enters into a forward contract to sell SF 1 million on January 1, 2010; the forward price is $0.98/SF.  What is the profit or loss the company will make in dollars?

Answer rating: 100% (QA)

The company will effectively lock in a profit by entering into these two forward contracts Heres why ... View the full answer