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1. Suppose the current spot exchange rate is 1.1020 CAD/USD and the dollar is trading at a forward premium of 2.5% relative to the Canadian

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1. Suppose the current spot exchange rate is 1.1020 CAD/USD and the dollar is trading at a forward premium of 2.5% relative to the Canadian dollar. Based upon your economic forecast, you are pretty c confiden that the spot exchange rate will be 1.1120 CAD/USD in twelve months. What actions would you take to speculate in the forward market if you have S100,000 to speculate

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