The spot exchange rate is $1.20 per euro and the 90 day forward rate is $1.18. The
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The spot exchange rate is $1.20 per euro and the 90 day forward rate is $1.18. The expected future spot rate is $1.17. What is the expected profit for a speculator who uses a forward contract for 10,000 euros?
Related Book For
Financial Theory and Corporate Policy
ISBN: 978-0321127211
4th edition
Authors: Thomas E. Copeland, J. Fred Weston, Kuldeep Shastri
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