Ignoring transaction costs and based solely on the change in currency exchange rates, a speculator who sold short a two-year contract for the euro (receiving dollars) in January 2006 would have realized a profit upon the exercise of the contract in January 2008.

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The Answer of Ignoring transaction costs and based solely on the change in currency exchange rates, a speculator who sold short a two-year contract for the euro (receiving dollars) in January 2006 would have realized a profit upon the exercise of the contract in January 2008.

Ignoring Transaction Costs and Based Solely on the Change in Currency