8. Exchange rate forecasting: Market-based forecasting 1. Suppose that a company uses the 90 -day forward rate on British pounds as a forecast for the dollar value of the pound in 90 days. If the expected 90 -day future spot rate of the pound is $1.70, the 90 -day forward rate is $1.60, and the company purchased 9,000,000 pounds, then the company would make a profit of over the next 90 days if their forecast is correct. TOTAL SCORE: 1/2 (to complete this step and unlock the next step) 8. Exchange rate forecasting: Market-based forecasting 1. Suppose that a company uses the 90 -day forward rate on British pounds as a forecast for the dollar value of the pound in 90 days. If the expected 90 -day future spot rate of the pound is $1.70, the 90 -day forward rate is $1.60, and the company purchased 9,000,000 pounds, then the company would make a profit of over the next 90 days if their forecast is correct. TOTAL SCORE: 1/2 (to complete this step and unlock the next step)