Business, 04.04.2020 09:44 emily41950
The current spot exchange rate is $1.55/€ and the three-month forward rate is $1.50/€. Based on your analysis of the exchange rate, you are confident that the spot exchange rate will be $1.52/€ in three months. Assume that you would like to buy or sell €1,000,000. What actions do you need to take to speculate in the forward market? A. Sell euro today at the spot rate, buy them forward. B. Take a short position in a forward contract on €1,000,000 at $1.50/€. C. Take a long position in a forward contract on €1,000,000 at $1.50/€. D. Buy euro today at the spot rate, sell them forward.
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The current spot exchange rate is $1.55/€ and the three-month forward rate is $1.50/€. Based on your...
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