q33

"Suppose today is November 15. Today (Nov 15), a US firm is planning to import Mexican caviar worth Pesos 2 million due on December 15 (one month later). The firm decides to hedge its payables position by using December peso futures. The spot rate on Nov 15 is US$ 0.0630 / peso and the December futures price on Nov 15 is at $0.0665 per peso. One month late on December 15, the spot rate is $0.05707 peso while the December futures price is $0.0615/peso. Assume contract size is 2 million pesos. What is the gain or loss from the futures hedge;" "Loss of $9,000" "Gain of $12,000" "Loss of $10,000" "Gain of $10,000