The 3 month forward rate between British pound and the Swiss franc is £0.5.A speculator predicts the spot rate in three months to be £0.51 and has £1,000,000 for speculation.The speculator should not
A) get a long position on British pounds
B) get a short position on Swiss francs
C) speculate
D) get a long position on Swiss francs
Correct Answer:
Verified
Q20: The AUD/$ spot exchange rate is 1.60
Q21: Given the following information:
Bank A:
Q22: All of the following are key elements
Q23: If CIBC posts 1.10 CA$/US$ - 1.14
Q24: The 3 month forward rate between British
Q26: If the speculator's predictions prove correct,the speculator
Q27: If CIBC posts 1.10 CA$/US$ - 1.14
Q28: The current spot exchange rate is $1.6/euro
Q29: Assume the following quotes:
1)Bank A: $1.5400/pound
2)Bank B:
Q30: If the speculator's predictions prove wrong and
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