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Stefan trades currency for R - Capital. Stefan has $ 1 0 , 0 0 0 , 0 0 0 to begin with, and he

Stefan trades currency for R-Capital. Stefan has $10,000,000 to begin with, and he must state all profits at the end of any speculation in US dollars. The spot rate is $1.3558/, while the 30-day forward is $1.3550/.
d. If Stefan believes the euro will continue to rise in value against the US dollar so that he expects the spot rate to be $1.3600/ at the end of 30 days, what should he do? Calculate his profit (if any).
b. If Stefan believes the euro will depreciate against the US dollar so that he expects the spot rate to be $1.2800/ at the end of 30 days, what should he do? Calculate his profit (if any).

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