What are two ways to speculate in the currency markets

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1. What are two ways to speculate in the currency markets without investing any money up front?

2. What do financial economists mean when they discuss the conditional expectation of the future spot exchange rate?

3. What is the main determinant of the variability of forward market returns?

4. Describe how you construct the uncertain yen- denominated return from investing 1 yen in the Swiss franc money market.

5. What is a hedged foreign currency investment? What happens if you hedge your return in Question 4?

6. What does it mean for the 90-day forward exchange rate to be an unbiased predictor of the future spot exchange rate?

Reference no: EM13897858

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