A PORTFOLIO MANAGER IS REQUIRED TO SELL 31,250 SHARES OF XYZ INC....

47. - MOCK AND SAMPLE EXAMS CFA 2012 L1 SAMPLE EXAM V1 QUESTION
MOCK AND SAMPLE EXAMS CFA 2012 L1 SAMPLE EXAM V1 QUESTION
47. A portfolio manager is required to sell 31,250 shares of XYZ Inc. in two months. She is concerned that the price of XYZ will decline during the 2-month period, so she enters into a deliverable equity forward contract to sell 31,250 shares of XYZ in 2 months for EUR160 per share. When the contract expires, XYZ is trading at EUR138 per share. The portfolio manager will most likely: A．pay EUR 687,500 to the dealer. B．receive EUR 4,312,500 from the dealer. C．receive EUR 5,000,000 from the dealer.