just in case a picture was needed
JUNE FUTURES PRICE, S/Peso (BLUE) Daily Peso SPOT Price (RED) $0.0465 $0.0455 $0.0445 $0.0435 DATE May 1 May 4 May 5 May 6 May.7 May 11 May 12 May 13 May 14 May 15 May 18 May 19 May 20 May 21 May 22 May 26 May 27 May 20 May 22 luna lun Jun Luns und lun Jun 10 un 11 Jun 12 Futures Spot Price Price by date $ 0.0402 S 0.0406 0.04099 0.0415 0.04159 0.0416 0.04095 0.041 0.0413 0.0416 0.04158 0.0418 0.0411 0.041 0.04083 0.0413 0.0414 0.0419 0.04148 0.0417 0.04196 0.0421 0.04172 0.04223 0.04317 0.04310 0.04346 0.0437 0.04381 0.044 0.04492 0.04504 0.04472 0.04483 0.04499 0.04503 0.04496 0.0451 0.04588 0.0459 0.04586 0.0459 0.04568 0.0456 0.04616 0.0463 0.04629 0.046513 0,0457 0.0456 0.04575 0.0457 0.04398 0.04394 0.04473 0.045 $0.0425 $0.0415 $0.0405 $0.0395 May 11 May 16 May 21 May 20 May 19 May 28 May 23 31 May. 12 May 29 May 15 May 18 May 22 May 26 May May May Muy May ANSWER FOR QUIZ ENTRY PROBLEM SET 2 19pts total Buying Pesos $ 1 It is now May 1. At SPOT, what is the total US$ value of 3million Pesos? Sell? or Buy? $ 2. Your US firm will be BUYING 3 m. Pesos on JUNE 11 and will hedge using June Futures contracts against the US$ cost being higher then. Your firm will SELL?? Or BUY?? Futures 3. What is the total $ value of 3 m. Pesos at May 1 Futures contract Price? $ 4. It is now.Tune 11 At SPOT, what is the total US$ value of 3 million Pesos? Spot GAIN?? Spot LOSS?? $ 5. Buying the 3 m. Pesos at SPOT on June 11 (if did not hedge) versus Spot value on May 1 results in a GAIN?? OR LOSS?? in the Spot market for your US firm. 6 Calculate the total SPOT $ amount of GAIN?/LOSS? if did not hedge with Futures. Show GAIN as "+"S, LOSS as "-"S $ 7. What is the total $ value of 3 m. Pesos at the June 11 futures price? 8. A Futures hedge started on May 1, results in a futures GAIN?? OR LOSS?? As of June 11 Fut. GAIN? Fut. LOSS? $ 9. If you started a Futures hedge on May 1, calculate the total $ amount of Futures GAIN?/LOSS? as of June 11 Show GAIN OS" "S, LOSS os" - "S $ 10. Calculate your total $NET Gain?/Loss? by combining the June 11 Spot Gain?/Loss? with the June 11 Futures Gain?/Loss?. Show GAIN as "+"S. LOSS as "-"$ This is the net result for your firm from using Futures hedge for buying 3 m. Peso on June 11 GENERAL: A proper hedge will combine o Spot Gain with Futs Loss, or a Spot Loss with Futs Gain PROBLEM SET 1 19pts total Selling Pesos ANSWER FOR QUIZ ENTRY $ 1 ts now. May 4. At SPOT, what is the total US$ value of 5 million Pesos? MAY Y. NOW Sell? or Buy? $ 2. Your US firm will be selling 5m. Pesos on Jun.2 but will hedge using June Futures contracts against the US$ value being lower then. Your firm will SELL?? Or BUY?? Futures 3. What is the total $ value of 5 m. Pesos at May 4 Futures contract Price? $ 4.It is now Jun 2 At SPOT, what is the total US$ value of 5 million pesos? Spot GAIN?? Spot LOSS?? $ 5. Selling the 5 m. Pesos at SPOT on Jun.2 (if did not hedge) versus Spot value on May 4 results in a GAIN?? OR LOSS?? in the Spot market for your US firm. 6 Calculate the total SPOT $ amount of GAIN?/LOSS? if did not hedge with Futures Show GAIN as", LOSS as "-"$ $ 7. What is the total S value of 5m. Pesos at the May 4 futures price? 8. A Futures hedge started on May 4, AS OF Jun 2 results in a futures GAIN?? OR LOSS?? Fut. GAIN? Fut. LOSS? $ 9. If you hedged with Futures on May 4, calculate the total $ amount of Futures GAIN?/LOSS? as of Jun.2. Show GAIN as "+"S, LOSS as "-"S $ 10. Calculate your Total $NET Gain?/Loss? by combining the Jun.2 Spot Gain?/Loss? with the Jun.2 Futures Gain?/Loss?, Show GAIN as "+"S, LOSS as "-"$ This is the net result for your firm from using Futures hedge for selling 5 m. Peso on Jun.2 GENERAL: A proper hedge will combine a Spot Gain with Futs Loss, or a Spot Loss with Futs Gain UNE FUTURES PRICE S Peso (BLUE) Daily Peso SPOT Price (RED) Spot Price DATO by date May $ 0.0402 $ 0.0406 004099 0.0415 Mays 0.04159 0.0416 May 0.00095 0041 May 0.0413 0.0416 May 11 0.04158 0.0418 May 12 0.0411 0.041 004083 0.0413 Marta 0.0414 0.0419 May is 0.04148 0.0412 0.04196 0.0421 May 19 0.04172 0.04223 May 20 0.04317 0.04310 May 21 0.04345 0.0432 May.az 0.04381 0.044 May 26 0.04492 0.04504 May.22 0.04672 0.04483 May 20 0.04499 0.04503 May 29 0.04496 0.0451 Pun2 0.04588 0.0459 0.04586 0.0459 Dua 4 0.04568 0.0456 0.04516 0.0463 0.04629 0.046513 fruna 0.0457 0.0456 Jun 10 0.04575 0.04457 un 11 0.01398 0.04394 Jun 12 0.01473 0.045 AS
