Question: The current spot exchange rate is $1.45/. The three-month forward rate is $1.40/. An investor shorts 1,260. At maturity, the spot rate is $1.50/. The

The current spot exchange rate is $1.45/. The three-month forward rate is $1.40/. An investor shorts 1,260. At maturity, the spot rate is $1.50/. The gain or loss () on this transaction is:

Multiple Choice

$126.
126.
$126.
None of the options.
126.

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