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1. Assume that the forward dollar-Euro exchange rate (F$/ ) is 1.05 while your expectations of the exchange rate (Ee $/ ) is 1.08. If

1. Assume that the forward dollar-Euro exchange rate (F$/ ) is 1.05 while your expectations of the exchange rate (Ee $/ ) is 1.08. If you are planning to trade foreign exchange, should you sign a forward contract to buy Euros or to sell Euros? Why?

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