How to calculate profits and losses (MODUL 4-17)

To solve this problem, you need to find out how many US dollars it takes to buy 4,550 Canadian dollars. When the speculator reversed the long Canadian dollar position, it took him 1.1866 Canadian dollars to buy one US dollar; so to find his profit, the speculator can simply divide the Canadian dollar profit (Canadian 4,550) by 1.1866 Canadian dollars per US dollar. The result is $3,834 US dollars.