Two speculators (Carl and Kevin ) in Canada sign a 3-month forward contract on US $1million. Carl is taking the long position and Kevin is taking the short position. The forward exchange rate is $1.30 (Canadian dollar) per US dollar. Currently, 1 US dollar equals to 1.28 Canadian Dollar. 3-month later, the exchange rate becomes $1.27 (Canadian dollar) per US dollar. Please describe physical delivery and cash settlement in this forward contract and specify whether the underlying asset is exchanged and cash flows to each speculator. What is the bet for each speculator? Please explain