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Question 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
Correct Answer: B
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