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International Macroeconomics question. Give all your exchange rate answers with 4 to 6 digits 3. Speculation on the forward market The spot exchange rate between

International Macroeconomics question.

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Give all your exchange rate answers with 4 to 6 digits 3. Speculation on the forward market The spot exchange rate between the $ and the Swiss Franc is $.7602/SF The forward exchange rate (90-day) between the $ and the Swiss Franc is $.7613/SF a. If a Speculator believes that in 90 days the $ISF spot exchange rate is going to be $.7610/SF, explain which actions he will take to speculate on the currencies. b. Assuming that he plans to use $1,000,000 for his speculative activities, calculate his potential gain if his prediction is correct. c. It turns out that 3 months later the Spot rate is $.7615/SF, will he actually realize a gain or a loss from his speculative activities? Calculate it (show the sign)

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