If the spot price of the euro is $1.10 per euro and the 30-day forward rate is believe that the spot rate in 30 days will be $1.05 per $1.00 per euro, and euro, then you can try to maximize...


If the spot price of the euro is $1.10 per euro and the 30-day forward rate is<br>believe that the spot rate in 30 days will be $1.05 per<br>$1.00 per euro, and<br>euro, then you can try to maximize speculative gains by<br>buying euros in the current spot market and selling euros in 30 days at the future spot rate.<br>you<br>signing a forward foreign exchange contract to sell euros in 30 days.<br>signing a forward foreign exchange contract to sell dollars in 30 days.<br>buying dollars in the spot market and selling the dollars in 30 days at the future spot rate.<br>

Extracted text: If the spot price of the euro is $1.10 per euro and the 30-day forward rate is believe that the spot rate in 30 days will be $1.05 per $1.00 per euro, and euro, then you can try to maximize speculative gains by buying euros in the current spot market and selling euros in 30 days at the future spot rate. you signing a forward foreign exchange contract to sell euros in 30 days. signing a forward foreign exchange contract to sell dollars in 30 days. buying dollars in the spot market and selling the dollars in 30 days at the future spot rate.

Jun 04, 2022
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