Assume that on November 1 , the spot rate of the Bnitish pound was $1.58 and the price on a December futures contract was $1.59. Assume that the pound depreciated during November so that by November 30 it was worth $1.51 a. What do you think happened to the futures price over the month of November? The December futures price would have b. If you had known that this would occur, would you have purchased or sold a December futures contract in pounds on November 1 ? You would have futures in pounds at the existing futures peice. Assume that a March futures contract on Mexican pesos was avalable in January for 50,09 per unit. Also assunse that forward contracts were avbilable for the same settlement date at a price of $0.092 per peso. How could speculators capitalize on this situation, assuming zero transaction casts? Speculators could peso futures for $0.09 per unit, and simulteneously pesos forward at $0.092 per unit. How would such speculative activity affect the difference between the forward contract price and the futures price? Speculators would place pressure on futures prices and pressure on forward prices. Thus, the difference between the forward contract pice and futares price would