contract has a price of $0.05481 per MXN. You believe the spot price in September

will be $0.06133 per MXN. What speculative position would you enter into to attempt

to profit from your beliefs? Calculate your anticipated profits, assuming you take a

position in three contracts. What is the size of your profit (loss) if the futures price is

indeed an unbiased predictor of the future spot price and this price materializes?

EXHIBIT 7.3 CME Group Currency Futures Contract Quotations Low Open interest Currency Futures Japanese Yen (CME)-$12,500,000; $ per 1 00$ une 9226 9255 Canadian Dollar (CME)-CAD 100,000; $ per CAD 7768 7766 0030 0030 9182 159,608 .9246 9202 7753 7753 118,862 2,744 7724 0023 0023 British Pound (CME)-62,500; $ per une 1.4353 14356 1.4333 1.4342 1.4391 1.4398 0023 0023 238,280 1,796 1.4421 Swiss Franc (CME)-CHF 125,000; $ per CHF 1.0258 1.0300 Australian Dollar (CME)-AUD 100,000; $per AUD 1.0271 1.0300 1.0231 1.0276 1.0235 1.0282 0032 0032 June 43,970 7301 7275 7280 7254 0016 0016 June 119,002 7222 2,404 91,662 339,149 Mexican Peso (CME)-MXN 500,000; $ per MXN p5487 June Euro (CME)-125,000; $ per June 05512 05440 05481 -.00006 1.1312 1.1347 1.1352 1.1386 1.1327 1.1363 0011 0011 1.1347 5,793 Euro/Japanese Yen (ICE-US)-125,000; \ pere 122.66 123.36 123.35 June 123.53 122.64 8,857 2 Euro/British Pound (ICE-US)-125,000; per 78710 .78915 00050 00055 28,429 4 June 78845 78995 78665 Euro/Swiss Franc (ICE-US)-125,000; CHF per une 1.1031 1.1069 1.1067 0045 Sources: The Wall Street Journal, Tuesday, May 17, 2016, p. C7. Euro/JPY, Euro/GBP, and Euro/CHF quotations are May 16, 2016 values from Bloomberg