The current spot exchange rate between Polish Zloty and US dollar is 4.3250PLN per USD and the three-month forward rate is 4.3595PLN per USD. You enter into a long position on USD1,200,000. At maturity, the spot exchange rate is 4.3475PLN per USD. How much have you made or lost?

Answer rating: 100% (QA)

To calculate the gain or loss we need to compare the forward rate at which you entered into t... View the full answer