Question
3. Your company will have to pay 2,000,000 pesos in 6 months. The current exchange rate on the peso 0.0450 $/peso. If there is a
3. Your company will have to pay 2,000,000 pesos in 6 months. The current exchange rate on the peso 0.0450 $/peso. If there is a 5% appreciation in the peso over the next 6 months, what will be the US dollar value of your payable (this should be a negative number)?
2.If you put on the futures position from 2 at a price of 0.043 $/peso, and if the peso appreciates from the spot rate of 0.045 $/peso by 15% in the next 6 months, what will be the total value of your position (the payable plus the future) in 6 months (again, this should be a negative number)?
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