Suppose that the spot price of the pound in terms of the dollar
is $2.11 and the 1 month forward price is $2.00. A British
currency trader who is willing to ignore risk considerations
and thinks the pound will be worth $1.90 in one month's time
should
1. sell pounds forward in return for dollars.
2. sell dollars forward in return for pounds.
3. buy pounds forward in return for dollars.
4. do either 2. or 3.
Choose the correct option.