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If the Three-Month FR=$1/€1 and a Speculator Anticipates That SR=$1

question 14

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If the three-month FR=$1/€1 and a speculator anticipates that SR=$1.02/€1 in three months,he can earn a profit by:


Definitions:

Decimal Numbers

Numbers that contain a decimal point, dividing the integer part from the fractional part, used in arithmetic computations.

Float Type

A data type in programming that specifies a variable that can hold a real number with fractional precision.

Decimal Places

Refers to the number of digits to the right of the decimal point in a number. This is important in mathematics and when precision is required in calculations.

Reference Type Variables

Variables that store references to the locations of objects in the memory heap, as opposed to containing the objects themselves.

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