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2. Suppose that the 90-day forward rate is $1.45/, the current spot rate is $1.42/, and you expect the future spot rate in 90 days

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2. Suppose that the 90-day forward rate is $1.45/, the current spot rate is $1.42/, and you expect the future spot rate in 90 days to be $1.39/. What contract would you make to speculate in the forward market by either buying or selling $1,000? What is your expected pound profit? (2 marks)

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