How to calculate profits and losses (MODUL 4-11)

Quiz #2

A speculator believes that the Swiss Franc will appreciate against the US Dollar and enters into a forex transaction when the USD/CHF spread is 1.2584/1.2586. In this situation, what will the speculator do?

A. Sell US dollars and buy Swiss francs at 1.2586

B. Sell US dollars and buy Swiss francs at 1.2584

C. Sell Swiss francs and buy US dollars at 1.2586

D. Sell Swiss francs and buy US dollars at 1.2584