The current spot exchange rate is $1.20/euro. The current 90-day forward exchange rate is $1.18/euro. You expect

Question:

The current spot is $1.20/euro. The current 90-day forward is $1.18/euro. You expect the spot rate to be $l.22/euro in 90 days. How would you speculate using a forward contract? If many people speculate in this way, what pressure is placed on the value of the current forward Exchange Rate
The value of one currency for the purpose of conversion to another. Exchange Rate means on any day, for purposes of determining the Dollar Equivalent of any currency other than Dollars, the rate at which such currency may be exchanged into Dollars...