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3) Use the following information to determine the probability distribution of per unit gains from selling Mexican peso futures. Spot rate of peso is $.12.

3) Use the following information to determine the probability distribution of per unit gains from selling Mexican peso futures.

Spot rate of peso is $.12.

Price of peso futures per unit is $.145 per unit.

Your expectation of peso spot rate at maturity of futures contract is:

Possible Outcome for Future Spot Rate	Probability
0.10	08%
0.115	62%
0.15	30%

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