Consider a speculator in U.S. Assume that the three month forward rate, FR = $5/1 and speculator believes that the spot rate in three months will be SR = $6/1. Assume that the current spot rate, SR=$5/1. Suppose the speculator can not borrow . There are zero interest on both dollar deposits(or bills) and euro deposits(bills). The speculator has $50000. Assume that the speculator is rational (profit maximiser) and risk neutral and speculates based on his beliefs. With respect to his decision today, choose the correct alternative. * 1The speculator will forward sell $50000 and he can gain only by proceeding with this step. 2The speculator will not enter forward contract and the only way to make gain is to start with exchanging $50000 for pounds today. 3The speculator gets same outcome whether he enters forward contract of selling $50000 or exchanges $50000 for pounds today