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The current spot exchange rate is $1.95/ and the 3-month forward rate is $1.90/. On the basis of your analysis of exchange rates, you are
The current spot exchange rate is $1.95/ and the 3-month forward rate is $1.90/. On the basis of your | |||||||||
analysis of exchange rates, you are very confident that the spot exchange rate will be $1.92/ in three | |||||||||
months. Assume you would like to buy or sell 1,000,000. | |||||||||
C) | Would it make sense for you to use the currency futures market instead to speculate in | ||||||||
these circumstances? Why or why not? (3 marks) | |||||||||
Enter your input data, formulae, and answers below this row, and show all calculation steps: Please use excel for answers. |
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