Question
Assume you have $10,000 that you are willing to speculate with on the foreign exchange market. The current 180 -day forward exchange rate is $0.75/C.
Assume you have $10,000 that you are willing to speculate with on the foreign exchange market. The current 180 -day forward exchange rate is $0.75/C. You expect the spot rate to be $0.8/€ in 180 days. Assume your expectations are correct. How would you speculate using a forward contract? Calculate your profit.
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Step: 1
At a cost of 08 Ill open a short position in the forward ex...
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General Chemistry
Authors: Darrell Ebbing, Steven D. Gammon
9th edition
978-0618857487, 618857486, 143904399X , 978-1439043998
