A speculator working in Sydney believes the USD will fall in value compared to the AUD in the near future. He has decided to lock in to an available AUD 100 000 futures contract (15 December 2020) at a settlement price of USD0.8343 per 1 AUD.

a)Did the speculator buy or sell the futures contract?Explain your answer in no more than

b)What is the value of one contract today?Clearly specify the currency of the contract value.

c)If the spot exchange rate is USD 0.8005 per 1 AUD on 15 December 2020, what is the value of the contract at maturity? Clearly specify the currency of the contract value.

Based on the spot exchange rate at 15 December 2020 as stated in part c), did the speculator correctly predict the movement in the exchange rate?Justify your answer in no more than