dulo $2$ Homework

Question $9,$ Problem $7-3($alaorithmic$)$

Part diz

InW Score: $76\mathrm{.}18\%,38\mathrm{.}1$ of $50$ points

Pointss $0$ et $5$

RiverReck Capital Geneva $($B$).$ Chriatoph Hioffeman of Riverflock Captial now believes the Swiss frane $($CHF$)$ will appeneciate versus the U$.$S$.$ dollar in the coming $3-$month period, He has USD$100,000$ to invest. The current spot rate is USDO$\mathrm{.}5822=$ CHF$1,00,$ the $3-$month forward rate is USDO$\mathrm{.}5639=$ CliF$1,90,$ and he expects the spot rates to reach USD$0\mathrm{.}6255=$ CHF$1\mathrm{.}00$ in three months.

a$.$ Calculate Christoph's expected profit assuming a pure spot mastet speculation strategr.

b$.$ Calculate Christoph's expected profit assuming he buys or sells SF three months forwand.