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The current spot exchange rate is $ 1 . 5 5 / and the three - month forward rate is $ 1 . 6 0
The current spot exchange rate is $ and the threemonth forward rate is $ Based on your analysis of the exchange rate, you are confident that the spot exchange rate will be $ in three months. Assume that you would like to trade What actions do you need to take to speculate in the forward market?
ASell forward for $CORRECT ANSWER A
BBuy forward for $
Cbuy today at $
DSell today at $
I know the answer is A but how do you solve it
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