Question
We have the following information. The spot exchange rates now and expected in a year from now between the South African rand and the Mali
We have the following information. The spot exchange rates now and expected in a year from now between the South African rand and the Mali West African franc (CFA) is .02and .025 S. A. rand per CFA. The forward rate between the two currencies is .225 S.A.randper CFA. How would we speculate in the spot markets and in the forward one to attain a profit? Presuppose, we have the equivalent of 10 million rands.
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Fundamentals Of Financial Management
Authors: James Van Horne, John Wachowicz
13th Revised Edition
978-0273713630, 273713639
