14. You are a currency trader specializing in the Japanese yen, and you are confident that the spot exchange rate will be 110/$ in six months based on your analysis. The current spot exchange rate is 115/$, and the six-month forward rate is 105/$. Assume that you would like to buy or sell 100,000,000. a. How should you speculate in the forward market to make a profit? What is the expected dollar profit from speculation? b. What would be your speculative profit in dollar terms if the spot exchange rate turns out to be 113/$ in six months?

14. You are a currency trader specializing in the Japanese yen, and you are confident that the spot exchange rate will be 110/$ in six months based on your analysis. The current spot exchange rate is Y115/S, and the six-month forward rate is Y105/S. Assame that you would like to buy or sell 100,000,000, a. How should you speculate in the forward market to make a profit? What is the expected dollar profit from speculation? b. What would be your speculative profit in dollar terms if the spot exchange rate turns out to be X113/5 in six months