Assume perfect foresight. The current spot rate is C$2.037 per British pound. The 3-month forward rate is C$2. The spot rate in three months will be...

Assume perfect foresight. The current spot rate is C$2.037 per British pound. The 3-month forward rate is C$2.0383. The spot rate in three months will be C$2.04 per pound. What position must an investor assume in order to make a profit of $17.00?

Question 26 options:

a) Pound 13,077 short position

b) Pound 10,000 long position

c) Pound 10,000 short position

d) Pound 13,077 long position

n = Profit / (ST - F) = 17 / (2.04 - 2.0383)