A leader in your firm has been studying the foreign exchangemarket for a number

A leader in your firm has been studying the foreign exchangemarket for a number of years and believes that she can predictseveral of the foreign currency exchange rates relative to the U.S.dollar. The firm has $500000 to invest in the spot forward oroptions markets. Assume that the spot rate is $1.3435 to the euroandthat the forward rate for 12 months is $1.3705 to theeuro. However this leader is sure that the exchange rate in 12months will be $1.41 to the euro.