Refer to the previous two questions. What is the euro gain or loss assuming that future conditions described in Case 2 actually occur? (Ignore commissions and margin costs, and assume a naive hedge ratio.)
A) €2 965 000.00 gain
B) €45 500.00 gain
C) €2 965 000.00 loss
D) €45 500.00 loss
E) None of the above

Question

Quizplus · Accepted Answer

The Answer of Refer to the previous two questions. What is the euro gain or loss assuming that future conditions described in Case 2 actually occur? (Ignore commissions and margin costs, and assume a naive hedge ratio.)
A) €2 965 000.00 gain
B) €45 500.00 gain
C) €2 965 000.00 loss
D) €45 500.00 loss
E) None of the above

Refer to the Previous Two Questions