A currency trader purchases a 6-month forward contract for Euro (EUR) with a contract size of 125,000EUR at a price of 1.40CAD/EUR. At the contract expiration date, the contract is settled at a price of 1.50CAD/EUR. What is the profit/loss the trader makes?

Answer rating: 100% (QA)

The trader purchased a 6month forward contract to buy 125000 EUR The contract was purchased at ... View the full answer