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Suppose that you expect the US$ value relative to the Euro to remain fairly stable over the next few months. In your opinion, there is
Suppose that you expect the US$ value relative to the Euro to remain fairly stable over the next few months. In your opinion, there is a very low and equal probability of either a positive ($ appreciation) or negative ($ depreciation) change in the value of the Euro. How can you devise a trading strategy that is tailored along your convictions? Show in a graph (or with a detailed explanation) how that strategy will work and explain the potential pitfalls, if any .
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