wake2000

this is the assumption i made. therefore, since he predicts the pound to perform worse, the pound is selling "expensive" in the forward market and he should go short pound.

i am using the logic on page 94-95 of schweser book 3, but this is a slightly different example since in the text the question involves a depreciating foreign currency.

would be curious from deriv what the answer is.



Edited 1 time(s). Last edit at Thursday, May 26, 2011 at 01:09AM by the show NY.