Suppose you believe that the U.S. dollar will appreciate relative to the Canadian dollar and you trade 3 Dec 2021 CAD fu

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answerhappygod
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Suppose you believe that the U.S. dollar will appreciate relative to the Canadian dollar and you trade 3 Dec 2021 CAD fu

Post by answerhappygod »

Suppose you believe that the U.S. dollar will appreciate
relative to the Canadian dollar and you
trade 3 Dec 2021 CAD futures contracts
based on your expectation. The Canadian dollar contract size is
100,000 CAD. At the time you initiate your transaction, the Dec
2021 CAD futures price is 0.8456 $/CAD. In late October when
you close out your position, the Dec 2021 futures price changed to
0.811 $/CAD. What is your profit or loss on this
transaction after accounting for transaction fees of $15 per
contract per roundtrip transaction?
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