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Suppose you work for a firm that has $10 million in excess cash to invest for one month. Your task is to invest this money in the foreign exchange market to earn a profit—holding dollars is not an option. Select the currencies you wish to buy at today’s spot rate, but do not buy less than $2.5 million of any single currency. Track the spot rate for each of your currencies over the three days in the business press. On the last day, exchange your currencies at the day’s spot rate. Calculate your gain or loss over the three-day period. Report your results explaining the method you used to pick the currency, the result and why you got a profit/loss from the trading.
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