Name: CH5C HW 1. According to the following table, do the investors believe that the $ will be more or less valuable against the Peso in 3 months? in $ per $ Peso 0.0687 14.5560 1 month forward 0.0500 20.0000 3 month forward 0.0690 14.4928 6 month forward 0.0556 17.9856 2. Do the investors believe that the Peso will appreciate or depreciate against the $ in 1 month? 3 . What is the 6-month forward premium (discount) for $ in European terms? The 6- month contract is a 180-day contract. 4 . Using the same information given in #1, calculate the 1-month forward premium for pes in American terms. The 1- month contract is a 31-day contract. 5. The forward rate between the Peso and $ is Fo($/peso) = 0.0556. If you believe that the peso will depreciate against the $ over the next 6 months, should you take a long or a short position in the peso forward contract? 6. If you take a long position by buying Peso2.5 million forward, and if the spot rate 6 months later is S180 ($/peso) = 0.0501, what would be your profit (loss)