# Question

Suppose the spot exchange rate is C$1.4665 per €1, while the six-month forward rate is C$1.50 per euro. What will be the profit for an investor who assumes a €100,000 long position in the forward contract if the spot rate in six months equals the following amounts?

a. C$1.40 per euro

b. C$1.60 per euro

a. C$1.40 per euro

b. C$1.60 per euro

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