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Given the Following: spot rate of the argentine peso $0.39 one-year interest rate U.S. 7 percent one-year interest rate Argentine 12 percent futures price =

Given the Following:

spot rate of the argentine peso $0.39
one-year interest rate U.S. 7 percent
one-year interest rate Argentine 12 percent
futures price = forward price
interest rate parity exists

Investor purchased futures contracts on Argentine Peso representing 1,000,000 pesos. Determine the total dollar amount of profit (loss) from this futures contract based on expectation Argentine peso will be worth $0.41 in one year. Please show detailed work.

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