Kapinsky Capital Geneva (B). Christoph Hoffeman of Kapinsky Capital now believes the Swiss franc will appreciate versus the U.S. dollar in the coming 3-month period. He has $100,000 to invest. The cur-rent spot rate is $0.5820/SF, the 3-month forward rate is $0.5640/SF, and he expects the spot rates to reach $0.6250/SF in three months

.a. Calculate Christophs expected profit assuming a pure spot market speculation strategy.

b. Calculate Christophs expected profit assuming he buys or sells SF three months forward.