The current spot GBP/USD rate is 1.9456 and the three-month forward rate is 1.9124. Based on your analysis of the exchan

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answerhappygod
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The current spot GBP/USD rate is 1.9456 and the three-month forward rate is 1.9124. Based on your analysis of the exchan

Post by answerhappygod »

The current spot GBP/USD rate is 1.9456 and the three-monthforward rate is 1.9124. Based on your analysis of the exchangerate, you are pretty confident that the spot exchange rate will be1.9233 in three months. Assume that you would like to trade£4,000,000 in the forward market. What is the expected dollarprofit from speculation? (USD, no cents)
-49,600
43,600±
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