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Assume it is June 1, 2016 and the exchange rate for U.S. dollars and British pounds
is approximately $1.00 = £0.70. You are a currency speculator. Somehow you know
that on June 23, 2016, the British will vote to approve Brexit, removing the U.K. from
the European Union. Suppose you also know that about week after the vote, on July
1, 2016, the exchange rate for U.S. dollars and British pounds will have increased to
approximately $1.00 = £0.84. In your portfolio (on June 1), you have $1,000,000 in
dollars and £1,000,000 in pounds with which to speculate. Your intent is to profit from
currency speculation. Using the money in your portfolio to make currency trades on
June 1 and on July 1, calculate how much profit you could make in dollars.
your answer in U.S. dollars rounded to one decimal place. Use a negative
sign "-" for negative values. Do not include any symbols, such as "$," "=,"
"%," or "," in your answer.