Question
On June 15, a US firm is planning to import Mexican caviar worth Pesos 2 million due on July 15 (one month later). The firm
On June 15, a US firm is planning to import Mexican caviar worth Pesos 2 million due on July 15 (one month later). The firm decides to hedge its payables position by using September peso futures. The spot rate on June 15 is US$ 0.0630 / peso and the September futures price on June 15 is at $0.0665 per peso. One month late on July 15, the spot rate is $0.0570 / peso while the September futures price is $0.0615 / peso. Assume contract size is 2 million pesos.
What is the total net cost of APs in US $ to the U.S. importer?
| a. | None of the other answers
| |
| b. | $124,000
| |
| c. | $145,000
| |
| d. | $104,000 |
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How To Trade With High Probability
Authors: Ricardo Moneta
1st Edition
1542590159, 978-1542590150
