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The spot rate for euro is $1.10. One month ahead forward rate is $1.12. A non deliverable forward contract to buy 10,000 euros is entered
The spot rate for euro is $1.10. One month ahead forward rate is $1.12. A non deliverable forward contract to buy 10,000 euros is entered into. If the end of the month the spot rate ends at $1.15 per euro what will be the gain received?
Speculative attacks occur against currency that follow:
O A fixed exchange rate regime.
A floating exchange rate regime.
Immediately after the onset of the Asian financial crisis, Malaysia opted to:
O Float the ringgit freely.
Temporarily fix the exchange rate for the ringgit against the US dollar.
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