The paper specifies the conditions for profitable speculation in the foreign exchange market with spot and forward contracts. It derives the unique strategic rules from the initial two-choice situations in a given environment. Finally, in a more complex structure involving covered arbitrage,...

Capital structure plays a significant role in the determination of the value of the firm. The literature is replete with studies that relate to mature capitalist economies in the western world. When the models are applied to less-structured countries of the Middle East, one would question...

This paper reviews and extends the existing literature on covered arbitrage, delineates the conditions for profitable arbitrage with the hedging instruments of forward and options contracts in the foreign exchange markets, and defines the maximum possible profits out of a given market...