Take to enter into speculative forward position

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It is May 16, 2016. Suppose that a $/SF trader has just heard an economic forecast from the bank's head economist that causes him to believe that the dollar will likely appreciate in value against the Swiss franc over the next three months. If he decided to act on this information, what actions will he take to enter into a speculative forward position? Assume that he is dealing with SF5,000,000 and the forward rate is $1.0270/SF. Create a specific numerical scenario for each of the outcomes( losing money and gaining money) on August 16, 2016.

Reference no: EM131565947

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