Question: For Q 57: You enter a 1year forward long contract for euros. The amount is $1000. The current forward rate is 1.20$/. The current spot

For Q 57: You enter a 1year forward long contract for euros. The amount is $1000. The current forward rate is 1.20$/. The current spot rate is 122$/.

5) How much is the forward premium on the euro?

6) How much is the size of the contract?

7) If spot rate at time of delivery is 1.33 $/, what is the net profit to the long position?

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