both

Suppose that the day forward rate is $1.22/8, the current spot rate is $1.1916, and you expect the future spot rate in 90 days to be $1.10/. A present time what contract would you make to speculate in the forward market by other buying or selling 10,000,000? What is your expected profit in $ of speculating in the right direction of the forward market by elther buying or selling 10,000,000? O $0 Infinite $400,000 O $200,000 O $300,000 D Question 20 6 pts Suppose that the 90-day forward rate is $1.22/, the current spot rate is $1.19/, and you expect the future spot rate in 90 days to be $1.18/. If the standard deviation of the 90-day rate of appreciation of the euro relative to the dollar is 3%, what range covers 95% (i.e. 2 standard deviations from the mean) of your possible exchange rates? (Lower Bound: Upper bound)