Question $26$

$2\mathrm{.}85$ pts

You are a forward trader in the FX market, and based on your fundamental analysis, the Australian $ will strengthen over the next $3$ months. You have A$ $15,000,000$ to invest

The current market has the following quotes $($in terms of market convention USD per $1$ AUD$)$

Spot $0\mathrm{.}6225$

$1$ Month forward $0\mathrm{.}6270$

$3$ Month forward $0\mathrm{.}6315$

$6$ Month forward $0\mathrm{.}6365$

You enter into your forward trade, and in three months the spot exchange rate of the USD per AUD is $0\mathrm{.}6645.$ What trade did you enter and how much USD did you lose or make on your trade?

Bought AUD$/$Sold USD forward for a profit of AUD $495,000$

Sold AUD$/$Bought USD forward for a loss of USD $495,000$

Bought AUD$/$Sold USD forward for a loss of AUD $495,000$

Bought AUD$/$Sold USD forward for a profit of USD $495,000$

Sold AUD$/$Bought USD forward for a profit of AUD $495,000$

Sold AUD$/$Bought USD forward for a profit of USD $495,000$

Sold AUD$/$Bought USD forward for a loss of AUD $495,000$

Bought AUD$/$Sold USD forward for a loss of USD $495,000$