tion on October 1. He is worried about the increasing forex prices, and wants to lock the forex rate via a currency swap. He then enters a 3-month forward for 1 USD = PHP 50. On October 1, the forex rate is trading at 1 USD = PHP 48. Did the actor lose or gain profits, and by how much? (Show your solution)

tion on October 1. He is worried about the increasing forex prices, and wants to lock the forex rate via a currency swap. He then enters a 3-month forward for 1 USD = PHP 50. On October 1, the forex rate is trading at 1 USD = PHP 48. Did the actor lose or gain profits, and by how much? (Show your solution)

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter17: Capital And Time

Section: Chapter Questions

Problem 17.2P

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