The XYZ company is a US based MNC & deals with various financial instruments as its core business activity. Among its va

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The XYZ company is a US based MNC & deals with various
financial instruments as its core business activity. Among its
various courses of action, the firm deals with financial
derivatives (like forward, future, options etc) & acts as
hedger, arbitrager and speculator as well. To be competitive in the
market, it has to observe and analyze different economic scenarios
in different places/countries and formulate the strategy
accordingly to nurture the available business opportunity.
With this reference, assuming your team is one of the core
business teams of the XYZ Company & based on your understanding
of subject matter kindly respond & answer to following
different scenarios:
Scenario 1: How can currency futures be
used by the XYZ Company as an arbitrageur & as a
speculator?