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You are an arbitrageur in London. Swiss francs are currently selling in London for U.S. $0.67. You anticipate they will be selling for U.S. $0.70

You are an arbitrageur in London. Swiss francs are currently selling in London for U.S. $0.67. You anticipate they will be selling for U.S. $0.70 in 30 days. You purchase $1 million worth of francs on the spot market.

In a 2-3 page paper examine what you can do to hedge your bet. Analyze steps you will take to avoid losing all your money should the value of the franc decrease.

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