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 $0.5824/SF, the 3-month forward rate is $0.5639/SF, and he expects the spot rates to reach $0.6253/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