(Solved): The current spot exchange rate is \( \$ 1.50 / \) and the three-month forward rate is \( \$ 1.5 ...

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? None of the other answers Wait three months, if your forecast is correct buy \( € 1,000,000 \) at \( \$ 1.62 / \epsilon \). Sell \( \in 1,000,000 \) today at the spot rate, buy \( € 1,000,000 \) forward. Buy \( \in 1,000,000 \) today at the spot rate, sell \( € 1,000,000 \) forward. Buy \( € 1,000,000 \) today at \( \$ 1.50 / € \); wait three months, if your forecast is correct sell \( € 1,000,000 \) at \( \$ 1.62 / € \).