Suppose that you observe a $90-$day forward rate of $$1\mathrm{.}14/.$ The current spot rate is $$1\mathrm{.}13/,$ and

you expect that the spot rate that will be realized $90$ days in the future is $$1\mathrm{.}12/.$ What contract

would you make to speculate in the forward market by either buying or selling $10,000,000?$ What

is your expected profit? If the standard deviation of the $90-$day rate of appreciation of the euro

relative to the dollar is $2\%,$ what range covers $95\%$ of your possible profits or losses?