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A trader believes that the euro will appreciate versus the pound. Currently, the spot is €1.2/£...

  1. A trader believes that the euro will appreciate versus the pound. Currently, the spot is €1.2/£ and the forward is €1.3/£. Lay out the steps that the trader would implement if she wants to potentially profit (using forwards) from her view.

a. What if spot finished at £0.8696/€

b. What if spot finished at £0.7143/€

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