The chief currency strategist at the Copenhagen-based Viking hedge fund was reviewing the forecast that the fund chief economist had just released. Within six to nine months Greece would exit the euro-zone, and fears of contagion to other PIIGS countries would result in a 12 to 15 percent depreciation of the euro. The Danish krone is currently pegged to the euro at DKR 6. 71 = €1 and 3, 6, and 12 months forward krone against the euro are at an annualized discount of 1. 5, 2. 25, and 3. 50 percent. Show how our currency trader could speculate to capitalize on the in-house prognosis of a euro partial fragmentation. Explain which forwards are best suited for this speculative scheme. Show the cash flows and their timing.