Assume that Loblaws negotiated a forward contract to purchase 200,000 British pounds in 90 days....
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Assume that Loblaws negotiated a forward contract to purchase 200,000 British pounds in 90 days. The 90- day forward rate was $1.4025 per British pound. The pounds to be purchased were to be used to purchase British supplies. On the day the pounds were delivered by the bank in accordance with the forward contract, the spot rate of the British pound was $1.4450. What is the gain or loss for Loblaws
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