Suppose that at time zero the spot rate equals the 90-day forward rate at S 0 $S$
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Suppose that at time zero the spot rate equals the 90-day forward rate at S0 $∕S$ = F90 $∕S$ = $0.65∕S$. Assume that the spot rate increases by $0.0002/S$ each day over the ensuing 90 days. You buy Singapore dollars in both the forward and futures markets. Draw a timeline for each contract showing the cash inflows/outflows arising from the daily change in the spot rate.
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