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Kapinsky Capital Geneva (B). Christoph Hoffeman of Kapinsky Capital believes the Swiss franc will appreciate versus the U.S. dollar in the coming 3-month period. He

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Kapinsky Capital Geneva (B). Christoph Hoffeman of Kapinsky Capital believes the Swiss franc will appreciate versus the U.S. dollar in the coming 3-month period. He has $100,000 to invest. The current spot rate is $0.5823/SF, the 3-month forward rate is $0.5641/SF, and he expects the spot rates to reach $0.6255/SF in three months. a. Calculate Christoph's expected profit assuming a pure spot market speculation strategy b. Calculate Christoph's expected profit assuming he buys or sells SF three months forward. Kapinsky Capital Geneva (B). Christoph Hoffeman of Kapinsky Capital believes the Swiss franc will appreciate versus the U.S. dollar in the coming 3-month period. He has $100,000 to invest. The current spot rate is $0.5823/SF, the 3-month forward rate is $0.5641/SF, and he expects the spot rates to reach $0.6255/SF in three months. a. Calculate Christoph's expected profit assuming a pure spot market speculation strategy b. Calculate Christoph's expected profit assuming he buys or sells SF three months forward

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