Question: Consider a trader who takes a long position in a six-month forward contract on the euro. The forward rate is $1.75 = 1.00; the contract

Consider a trader who takes a long position in a six-month forward contract on the euro. The forward rate is $1.75 = 1.00; the contract size is 62,500. At the maturity of the contract the spot exchange rate is $1.65 = 1.00. Multiple Choice The trader has lost $625. The trader has lost $6,250. The trader has lost $66,287.88. The trader has made $6,250.

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