ACI Operations Certificate challenging 3I0-013 Question # 124 Topic 1 Discussion

ACI Operations Certificate challenging 3I0-013 Question # 124 Topic 1 Discussion

3I0-013 Exam Topic 1 Question 124 Discussion:
Question #: 124
Topic #: 1

In error, your dealer enters a trade whereby he buys GBP 8,000,000.00 against USD at 1.5500, but manages to cover it at the same rate. When the initial mistaken trade is cancelled, however, the rate has since changed to 1.5200. What is the effect on P&L?


A.

Profit GBP 240,000.00


B.

Loss GBP 240,000.00


C.

Profit USD 240,000.00


D.

Loss USD 240,000.00


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