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2. Suppose the current spot exchange rate is 1.3362 CAD/USD and the three-month forward rate is F(CAD/USD 1.3150. You are a U.S. based investor and

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2. Suppose the current spot exchange rate is 1.3362 CAD/USD and the three-month forward rate is F(CAD/USD 1.3150. You are a U.S. based investor and you are pretty confident in forecasting that the spot exchange rate will be 1.3245 CAD/USD in three months. Describe what speculative actions you would take in the forward market and calculate the expected profit if you have $500,000 to speculate? 3245 CAD/USD in three

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