The six-month forward rate is C$ 1.00 per US$. Ahmed assumes a 1,000 long position in the

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The six-month forward rate is C$ 1.00 per US$. Ahmed assumes a 1,000 long position in the forward contract and his profit in six months is C$30.00.

What is the spot rate in six months?

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Introduction To Corporate Finance

ISBN: 9781118300763

3rd Edition

Authors: Laurence Booth, Sean Cleary

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Posted Date: May 02, 2023 12:11 AM

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The six-month forward rate is C$ 1.00 per US$. Ahmed assumes a 1,000 long position in the

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Expert Answer:

To determine the spot rate in six months we can use the interest rate parity IRP formula which relat... View the full answer

Introduction To Corporate Finance

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