1. According to the following table, do the investors believe that the $ will be more or less valuable against the Peso in 3 months? in $ per $ Peso 0.0687 14.5560 1 month forward 0.0500 20.0000 3 month forward 0.0690 14.4928 6 month forward 0.0556 17.9856

2. Do the investors believe that the Peso will appreciate or depreciate against the $ in 1 month?

3. What is the 6-month forward premium (discount) for $ in European terms? The 6- month contract is a 180-day contract.