Assume you have $10,000 that you are willing to speculate with on the foreign exchange market. The current 180 -day forward exchange rate is $0.75/C. You expect the spot rate to be $0.8/€ in 180 days. Assume your expectations are correct. How would you speculate using a forward contract? Calculate your profit.

Answer rating: 100% (QA)

At a cost of 08 Ill open a short position in the forward ex... View the full answer