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1. According to the following table, do the investors believe that the S will be more or less valuable against the Peso in 3 months?

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1. According to the following table, do the investors believe that the S will be more or less valuable against the Peso in 3 months? in S 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 5. Let's say, the forward rate between the Peso and S is F6m(S/peso) = 0.0556. If you believe that the peso will depreciate against the $ beyond this 6-month forward rate of $0.0556/peso over the next 6 months, should you take a long or a short position in the peso forward contract? 6. Assume that the 6-month forward rate F6m(S/peso) = 0.0556. If you take a long position by buying Peso 2.5 million forward at this rate, and if the spot rate 6 months later is Som (S/peso) = 0.0501, what would be your profit (loss)

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