3. An investor enters into a short forward contract to sell 100,000 British pounds for...

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3. An investor enters into a short forward contract to sell 100,000 British pounds for U.S. dollars at an exchange rate of 1.40 USD per pound. How much does the investor gain or lose if the exchange rate at the end of the contract is (a) 1.30 and (b) 1.50 ? 4. Discuss the relationship between call price and A. Stock price B. Time to expiration C. Interest rate D. Dividend yield

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