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Suppose that the one-year forward rate is Fs/ = 0.5, and you expect the spot rate one year from now to be at E$j =

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Suppose that the one-year forward rate is Fs/ = 0.5, and you expect the spot rate one year from now to be at E$j = 0.25. Can you use the forward to speculate? Explain how you would do so. Suppose that the one-year forward rate is Fs/ = 0.5, and you expect the spot rate one year from now to be at E$j = 0.25. Can you use the forward to speculate? Explain how you would do so

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