If the speculator of Problem 9 believes that the spot rate in three months will be SR

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If the speculator of Problem 9 believes that the spot rate in three months will be SR = $1.95/£1, how can he or she speculate in the forward market? How much will the speculator earn if he or she is correct? What will the result be if in three months SR = $2.05/£1 instead?
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International Economics

ISBN: 978-1119915737

11th edition

Authors: Dominick Salvatore

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