Explain how you would trade to take advantage of these


You hold the current editions of The Wall Street Journal and The Financial Times, the British answer to the WSJ. In the WSJ, you see that the dollar/pound 90-day forward exchange rate is $2 per pound. In The Financial Times, the pound 90-day dollar/pound rate is .45 per U.S. dollar. Explain how you would trade to take advantage of these rates, assuming perfect markets.

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Financial Management: Explain how you would trade to take advantage of these
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