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Question
What is the net gain or loss on the loan given that the exchange rates at the time of repayment were $1.63/≤ in the cash market and 1.62/≤ in the futures market? Assume that the futures position is opened and unwound as stated in previous question.
A. $2,120,000 loss.
B. $1,330,000 loss.
C. $2,670,000 loss.
D. $1,330,000 gain.
E. $2,670,000 gain.
Answer
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