Alessandro reads in an Italian newspaper that the European economy is heading into a deflationary period, and
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Alessandro reads in an Italian newspaper that the European economy is heading into a deflationary period, and the ECB is using different stimulus strategies to support growth in the euro area. At the same time, United States is on a sustained path to growth, with economic and employment data looking strong. He wants to bet that the euro will fall against the U.S. dollar. What position should Alessandro adopt in the futures market? How much would he win (or lose) from this position if the €/US$ futures price changed from 1.125 US$/€ and was closed at 0.99 US$/€? (Assume that the contract size is €125,000.)
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Related Book For 
Fundamentals Of Investing
ISBN: 9780135175217
14th Edition
Authors: Scott B. Smart, Lawrence J. Gitman, Michael D. Joehnk
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