Problem $7\mathrm{.}4$

Using the quotations in Exhibit $7\mathrm{.}3,$ note that the June $2021$ Mexican peso futures contract has a price of $$0\mathrm{.}05143$ per MXN$.$ You believe the spot price in June will be $$0\mathrm{.}05795$ per MXN$.$ MXN$500,000$ is the contract size of $MxN$ contract.

Required:

a$.$ What speculative position would you enter into to attempt to profit from your beliefs?

b$.$ Calculate your anticipated profits, assuming you take a position in three contracts.

c$.$ What is the size of your profit $($loss$)$ if the futures price is indeed an unbiased predictor of the future spot price and this price materializes?