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Suppose a speculator bought Mexican peso futures in the amount of 1 million pesos with a futures price of $0.31 per peso at the time
Suppose a speculator bought Mexican peso futures in the amount of 1 million pesos with a futures price of $0.31 per peso at the time he bought the futures. Assume that the speculator will maintain his futures position until expiration and ignore transaction costs (e.g., broker fees). If the spot rate of the peso is $0.35 per peso on the expiration date, what is the speculator's total net profit from this speculation? Enter a gain (positive net profit) as a positive number and a loss (negative net profit) as a negative number.
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