Question
Assume that as of Oct 15, a futures contract specifying 125,000 Euro and a December settlement date is priced at $1.16 per Euro. In Oct,
Assume that as of Oct 15, a futures contract specifying 125,000 Euro and a December settlement date is priced at $1.16 per Euro. In Oct, Speculators expect the Euro will appreciate. What can speculators do?
Buy futures contracts on Euro or Sell futures contract on EURO
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Multinational Finance
Authors: Kirt C. Butler
3rd Edition
0324177453, 978-0324177459
