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Assume that the current spot quote ($/UK pound) is currently $1.80 and that the current 90-day forward quote ($/UK pound) is $2.00. If you believe
Assume that the current spot quote ($/UK pound) is currently $1.80 and that the current 90-day forward quote ($/UK pound) is $2.00. If you believe that the actual spot quote in 90 days will be $1.90, what should be done to make money (assuming that the rate does actually go to $1.90 as you predict). Explain
Assume that the current spot quote ($/UK pound) is currently $1.80 and that the current 90-day forward quote ($/UK pound) is $2.00. If you believe that the actual spot quote ($/UK pound) in 90 days will be $1.90, what should be done to make money (assuming that the rate does actually go to $1.90 as you predict). a. sell pounds forward, buy pounds spot b. sell pounds spot, buy pounds forward c. there is not enough information to give the correctStep by Step Solution
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