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Topic: Miscellaneous
Number of pages / Number of words: 2 / 494
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On the fixing date, that investor would theoretically be able to sell the notional amount, N, of the base currency at the prevailing spot rate, S, earning NS units of the quoted currency. Therefore, the profit, ?, on this trade in terms of the base currency, is given by:


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Therefore, the profit, ?, on this trade in terms of the base currency, is given by:


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