Question

Suppose you are a speculator who trades in the foreign exchange market. You take a short position in the AUDNZD at 1.0779. After two weeks have gone by, the AUDUSD is trading at 0.71860 and the NZDUSD is trading at 0.6825. If the lending/borrowing rate is 0% and you traded 1,250,000 AUD, what are your MTM profits in NZD? If the answer is A, B, C, D, E, or F, simply type the respective letter in the answer box. If the answer is G, write down the correct answer. A. 31,258.75 B.-31,258.75 C.-20,876.00 Page 15 D. 20,876.00 E.-26,095.00 F. 26,095.00 G. None of the above:

Answer 1

Given Shole position in the Agonzol 1.0979 0 71860 After 2 weeks AUDNZD gone by and NZDUSD is tradiy 6825 al vale i Borrowing Thaded 1,250,000 Avd. Cross rall AUDNZD Rate AUDUSD Rate NZDUSD - 0.71860 0.6825 1.0528938 Now = (Sale race-Cross rate) y size MTM profit >>(1.0779 - 1 165813) X 1259000 (0.02 50062)X 1250,000 31257175 1 This answer is near consider option option A 31258.75 ů answer