HELP ASAP, HW due soon, thank you.

Calculation

Suppose that the 180-day forward rate is $1.2000 USD/EUR, the current spot rate is 1.2300 USD/EUR, and you expect the future spot rate in 180 days to be 1.2500USD/EUR.

a. In such situation, are you going to speculate? Why? b. Assume your boss tell you to speculate, then how are you going to do it? c. Assume you trade a notional amount of 1,000,000 EUR, what is your expected profit? d. If the standard deviation of the 180-day rate of appreciation of the euro relative to the dollar is 5%, what range covers 68% of your possible profits and losses?