Question
A German speculator wants to speculate using forward contracts. She has bought the E forward against the Peso. She will be happy (make money in
A German speculator wants to speculate using forward contracts. She has bought the E forward against the Peso. She will be happy (make money in E on this contract) if :
a) The Peso gets weaker relative to the contract price.
b) The Peso gets stronger relative to the contract price.
c) none of the above, because she has locked in a fixed rate.
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Entrepreneurial Finance Strategy, Valuation, And Deal Structure
Authors: Janet Smith, Richard Smith, Richard Bliss
1st Edition
0804770913, 9780804770910
