Suppose that the three-month forward rate on the euro is ($1.43) but you think that the spot

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Suppose that the three-month forward rate on the euro is \($1.43\) but you think that the spot price in three months will be \($1.39\). Using only the forward market, what actions you should take and how much profit per euro do you expect to make?

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International Economics

ISBN: 9780321783868

9th Edition

Authors: Steven Husted , Michael Melvin

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