Question: What would happen if you take the a short position, borrowing the foreign currency today against 1,000,000, selling it immediately and hoping to repay the
What would happen if you take the a short position, borrowing the foreign currency today against 1,000,000, selling it immediately and hoping to repay the loan at the end of the period by buying up the foreign currency at a cheaper rate?
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Taking a short position in the foreign exchange market involves borrowing a certain amount of a foreign currency selling it immediately and hoping to ... View full answer
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