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URGENT !!!!!!!!! PLEASE ANSWER ASAP !!!!!!!!! ANSWERS MUST BE TYPED !!!!!!!!! THANK YOUUUU !!! The current spot exchange rate is RM5.76/ and the three-month forward
URGENT !!!!!!!!! PLEASE ANSWER ASAP !!!!!!!!! ANSWERS MUST BE TYPED !!!!!!!!! THANK YOUUUU !!!
The current spot exchange rate is RM5.76/ and the three-month forward rate is RM5.70/. Based on your analysis of the exchange rate, you are pretty confident that the spot exchange rate will be RM5.72/ in three months. Assume that you would like to buy or sell 7,000,000. a) Determine the action you need to take to speculate in the forward market. Compute the expected dollar profit from speculation. (4 Marks) b) Compute the speculative profit in RM terms if the spot exchange rate turns out to be RM5.67/? (4 Marks)Step by Step Solution
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