Suppose that the three-month forward rate on the dolar is $8.43 but you think that the spot price in three months will be $8.20 . Using only the forward market, what actions should you take and how much profit per dolar do you expect to make?
Suppose that the three-month forward rate on the dolar is $8.43 but you think that the spot price in three months will be $8.20 . Using only the forward market, what actions should you take and how much profit per dolar do you expect to make?
Chapter9: Perfect Competition
Section: Chapter Questions
Problem 10QP
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Suppose that the three-month forward rate on the dolar is $8.43 but you think that the spot
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