Please i need help on question #3 and #4. Please show your workings. Very urgent. Thanks!!
Name: CH5C HW 1. According to the following table, do the investors believe that the S will be more or less valuable against the Peso in 3 months? in s 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 S 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 F ($/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 (S/peso) - 0.0501, what would be your profit (loss)? Name: CH5C HW 1. According to the following table, do the investors believe that the S will be more or less valuable against the Peso in 3 months? in s 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 S 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 F ($/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 (S/peso) - 0.0501, what would be your profit (loss)