. The current spot exchange rate is $1.50/€ and the three-month forward rate is $1.55/€. Based on your analysis of the exchange
rate, you are confident that the spot exchange rate will be $1.62/€ in three months. Assume that you would like to buy or sell €1,000,000. What actions do you need to take to speculate in the forward market? What is the expected dollar profit from speculation? A. Sell €1,000,000 forward for $1.50/€, and you expect to gain $120,000. B. Buy €1,000,000 forward for $1.55/€, and you expect to gain $70,000. C. Buy €1,000,000 forward for $1.50/€, and you expect to gain $120,000. D. Wait for three months, if your forecast is correct buy €1,000,000 at $1.62/€.
