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0 . Suppose that the 90-day forward rate is $1.19/, the current spot rate is $1.20/, and you expect the future spot rate in 90

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0 . Suppose that the 90-day forward rate is $1.19/, the current spot rate is $1.20/, and you expect the future spot rate in 90 days to be $1.21/. What contract would you make to speculate in the forward market by either buying or selling $10,000,000 ? What is your expected profit? If the standard deviation of the 90-day rate of appreciation of the euro relative to the dollar is 3%, what range covers 95% of your possible profits and losses

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