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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 $1.55/ and the three-month forward rate is $1.60/. Based on your analysis of the exchange rate, you are confident that the spot exchange rate will be $1.58/ in three months. Assume that you would like to trade 1,000,000. What actions do you need to take to speculate in the forward market?
A--Sell 1,000,000 forward for $1.60/.(CORRECT ANSWER A)
B--Buy 1,000,000 forward for $1.60/.
C--buy 1,000,000 today at $1.55/.
D--Sell 1,000,000 today at $1.55/
I know the answer is A, but how do you solve it?

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