Waiting for answer This question has not been answered yet. You can hire a professional tutor to get the answer.
QUESTION
An Australian investor holds a one month short forward position on USD. The contract calls for the investor to sell USD 2 million in one months at a...
An Australian investor holds a one month short forward position on USD. The contract calls for the investor to sell USD 2 million in one months at a delivery price of $1.61 per USD. The current forward price for delivery in one month is F= $1.5850 per USD. Suppose the one month rate of interest is 6%. What is the value of the investorâs position?
