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Suppose that you are a currency speculator, based in the U.S. attempting to capitalize on a possible depreciation of the Canadian dollar (C$$). On January
Suppose that you are a currency speculator, based in the U.S. attempting to capitalize on a possible depreciation of the Canadian dollar (C\$\$). On January 1st, the spot rate for the Canadian dollar is $0.64. This is also the price at which futures contracts for Canadian dollars are being sold. You Suppose that on February 10th, the Canadian doliar depreciates (as you speculated) to $0.60 in the spot market. (U.S. dollars) for the exchange
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