the current spot exchange rate is $1.85/pound and the three-month forward rate is $1.80/pound. based on your analysis of the exchange rate, you are pretty confident that the spot exchange rate will be...

the current spot exchange rate is $1.85/pound and the three-month forward rate is $1.80/pound. based on your analysis of the exchange rate, you are pretty confident that the spot exchange rate will be $1.82/pound in three months. assume that you wouldlike to buy or sell 1,000,000 pounds.

what actions do you need to take to use these rates to earn a profit? what is the expected dollar profit from speculation?

what would be your speculative profit in dollar terms if the spot exchange rate actually turns out to be $1.76/pound