A speculator who expects the euro to appreciate might:

Question

Quizplus · Accepted Answer

If a speculator expects the euro to appreciate, they would want to purchase euros forward at a lower price and sell them in the spot market when the euro has appreciated in value. This would allow them to profit from the difference in price. Selling euros forward (as in option B) would only make sense if the speculator expects the euro to depreciate, while selling futures contracts (as in option C) does not take into account the timing of the purchase and sale, which is crucial in currency speculation.

A Speculator Who Expects the Euro to Appreciate Might