international finance

Today. you observe the following rates on the foreign exchange market: - $(CAD/S)=CAD1.3205/$ - FA(CAD/$S)=CAD1.2796/$ Based on your economic forecast, you believe the spot exchange rate will be CAD1.3005/\$ in six months. You would like to or sell CAD100,000. 1. Calculate the forward premlum or discount on an annualized basis for the exchange rate (CAD/\$). 2. What actions should you take to speculate in the forward market? 3. How much will you make if your prediction is correct? 4. Assume the spot exchange rate is CAD1.2685/\$ in six months. How much will be your speculative profit