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Hakan Yorulmaz speculates on the currencies in the foreign currency exchange market. Currently the spot price for the Danish krona is Dk159.87/$ and the 3-month

Hakan Yorulmaz speculates on the currencies in the foreign currency exchange market. Currently the spot price for the Danish krona is Dk159.87/$ and the 3-month forward rate is Dk 158.53/$. Hakan thinks the Danish krona will move to Dk 158.00/$ in the next three months. What should Hakan do? If Hakan has $100.000. explain how much he can earn as profit? Show calculations. Specify the transaction such as buy sell at forward' spot expected future spot rate. (15 pts)

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