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Assume you believe that Purchasing Power Parity (PPP) exists between the US Dollar (USD) and the Nigerian Naira (NGN) You expect that inflation Nigeria will

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Assume you believe that Purchasing Power Parity (PPP) exists between the US Dollar (USD) and the Nigerian Naira (NGN) You expect that inflation Nigeria will be 28% over the next year; you expect US inflation to be 4% over the same period. Today the spot rate of the Nigerian Nana is $ 0063, NGN and a 1 year futures contract available for Nigerian Naira (covering NGN10 million) is available for $0044/NGN BUY or SELL of futures contract on Naira? And, once you did what would you expected profit be from your market action

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