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Suppose on 4 9 ? 2 0 2 4 a U . S . MNC wishes to minimize the $ payable for Mex $ 5

Suppose on 49?2024 a U.S. MNC wishes to minimize the $ payable for Mex $50,000,000 it will pay in 4 months. The U.S. MNC is concerned that the Mex $ will increase in value relative to the $ and the U.S. MNC will end up paying more in $ 's. Answer the following questions on how the U.S. MNC would set up a futures hedge? Assume the hedge is set up at time t.(Initial margin is $1,430? contract; Maintenance margin is $1,300? contract). The closing prices are below:
\table[[(contract size = Mex $500,000,],[49?24(t),$0.05026? Mex$],[410?24(t+1),$0.05003? Mex$],[411?24(t+2),$0.04991? Mex$],[412?24(t+3),$0.05058? Mex$]]
What is the total gain or loss (from the futures hedge and this payable) if at the end of time t+3(1110?23) the US MNC wish As pays the Mex$ earlier than anticipated (i.e., pay at the end of t+3. Assume the spot rate on this same day is $0.05172Mex$ ?
None of these answers are correct
$16,000
-$57,000
$57,000
-$16,000
$0
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