Solved: How much will the speculator earn if he or she is correct, International Economics

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How much will the speculator earn if he or she is correct

Problem

Assume that the three month FR = $2.00/£1 and a speculator believes that the spot rate in three months will be SR = $2.05/£1. How can a person speculate in the forward market? How much will the speculator earn if he or she is correct?

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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International Economics: How much will the speculator earn if he or she is correct

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