The current spot exchange rate is 120eurothe current 90-day, Ask an Expert

Finance

The current spot exchange rate is $1.20/euro.

The current 90-day forward exchange rate is $1.18/euro.

You expect the spot rate to be $1.22/euro in 90 days.

How would you speculate using a forward contract?

If many people speculate in this way, what pressure is placed on the value of the current forward exchange rate?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91969533

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