In May 1997, George Soros started shortingThai Baht for U.S. dollar with a forward contract....
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In May 1997, George Soros started shortingThai Baht for U.S. dollar with a forward contract. As a result, the Thai Baht exchange rate had moved from 1.9 Bahts per dollar (May 1, 1997) to 31.8 Bahts per dollar (May 31, 1997) in a month. If George Soros had a short position of 28,000,000 Bahts forward contract at forward rate F1(Baht/$)=48.6 on May 1, 1997, then his profit/loss in the forward trading would be \& on May 31, 1997. (Please keep the sign and two decimal numbers.)
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