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Suppose you expect that Singapore dollar will appreciate versus the US$ in the coming 90 days. The current spot rate is ( $ 0.60 /
Suppose you expect that Singapore dollar will appreciate versus the US\\$ in the coming 90 days. The current spot rate is \\( \\$ 0.60 / \\$ \\$ \\). You expect an appreciation to \\( \\$ 0.70 / \\$ \\$ \\). The following options are available to you: a) What option would you buy? b) What is the gross and net profit (i.e. accounting for the premium) if the spot rate at the end of 90 days is \\( \\$ 0.80 / \\$ \\$ \\) ? c) What is the gross and net profit (i.e. accounting for the premium) if the spot rate at the end of 90 days is \\( \\$ 0.70 / \\$ \\$ ? \\)
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