Question: 6. Consider the following data about the exchange rate between the US Dollar and the Swiss Franc: Spot exchange rate: $0.50/SFr 30-day forward exchange rate:

6. Consider the following data about the exchange rate between the

6. Consider the following data about the exchange rate between the US Dollar and the Swiss Franc: Spot exchange rate: $0.50/SFr 30-day forward exchange rate: $0.49/SFr (a) Ms. A is a Swiss consultant who is due to receive 200,000 dollars in 30 days. How can she hedge the risk of exchange rate? How many Swiss Francs will she receive by hedging? (b) Mr. B is an investor who expects the spot exchange rate 30 days from now to be $0.5/SFr. How would the investor use the forward market to make a profit (speculate)

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