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*the current spot exchange rate is $1.95/ and the three-month forward rate is $1.90/. Based on your analysis of the exchange rate, you are pretty

*the current spot exchange rate is $1.95/ and the three-month forward rate is $1.90/. Based on your analysis of the exchange rate, you are pretty confident that the spot exchange will be $1.88/ in three months. Assume that you would like to buy or sell 1,000,000. What action should you need to take to speculate in the forward market and what is the expected dollar payoff from speculation?

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