Question: PUT 1 FOR ALL X THEN MAKE THE CALCULATIONS! EXAMPLE: if it is 1x3 then it will be 113!!! 2. Orhan Yasar speculates on the

PUT 1 FOR ALL X

THEN MAKE THE CALCULATIONS!

EXAMPLE: if it is 1x3 then it will be 113!!! PUT 1 FOR ALL X THEN MAKE THE CALCULATIONS! EXAMPLE: if

2. Orhan Yasar speculates on the currencies in the foreign currency exchange market. Currently the spot price for the Polish Zloty is Z1439,27/5 and the 4-month forward rate is Z1441X4/s. Orhan expects the Polish zloty will move to Z1441.5x/$ in the next four months. a. What should Orhan do? If Orhan has $200000, explain how much he can earn as profit in dollars? s100000, Show calculations. b. Specify the transaction such as buy/sell at forward/spot/expected future spot rate. Compare the risk level of possible transactions. (25 pts)

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