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Assume that on January 1, the spot rate of the euro was $1.18, and the price on a February futures contract was $1.17. Assume that

Assume that on January 1, the spot rate of the euro was $1.18, and the price on a February futures contract was $1.17. Assume that the pound appreciated during January so that by January 31, it was worth $1.20. If you had known that this would occur, how did you capitalize on earning some profits? Explain.

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