2. Topic: Short \& Long Positions A. Show how a currency trader can gain if they believe the Mexican Peso will fall in value against the US\$ by say, June. Assume a \$1 mil. transaction with June "settle price" of USS 0.11656= MXN 1.00. Assume Spot at maturity falls to US $0.09900. B. Assume a currency trader believes the Mexican Peso will rise versus the USS. Again, assume a \$1 million transaction and a June "settle price" of US\$ 0.11656= MXN 1.00. How will this trader do in this "long position" if the Mexican Peso falls to US $0.0900= per MXN 1.00 at the settlement date