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We have the following information. The spot exchange rates now and...

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Asked by ac0627 on coursehero.com

We have the following information. The spot exchange rates now and...

We have the following information. The spot exchange rates now and expected in a year from now between the South African rand and the Mali West African franc (CFA) is .02  and .025 S. A. rand per CFA. The forward rate between the two currencies is .225 S.A.rand per CFA. How would we speculate in the spot markets and in the forward one to attain a profit? Presuppose, we have the equivalent of 10 million rands.

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Answered by shristys on coursehero.com
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