Both

Assume that you find that forward exchange rates of the Malaysian ringat quoted in US dollars F(L.S/MYR) is a blased predictors of future spot exchange rates S(t+1.5/MYR). In particular, find that E[Error(t+1)]-E[S[+1),S/MRY)- F(t.S/MRY)-2%-0. The expected error term must revert to 0% quickly because no rational investor will volunteer to buy a forward contract with a -2% expected return True False No enough information Question 18 4 pts Suppose that the 90-day forward rate is $1.22/, the current spot rate is $1.191, and you expect the future spot rate in 90 days to be $1.18/. A present time t, what contract would you make to speculate in the forward market by either buying or selling 10,000,000