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An investment company. Will speculate on the pound with a forward contract. The investment company expects the pound to depreciate from today’s spot rate of $1.95 to a spot rate of $1.85 in 90 days. The 90 day forward rate is $1.65. To make a profit, will the investment company buy pounds forward or sell pounds forward? Explain your answer and provide calculations

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Financial Management, Finance

Category:- Financial Management
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