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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 a US MNC wishes to minimize the $ payable for Mex $ it will pay in months. The US MNC is concerned that the Mex $ will increase in value relative to the $ and the US MNC will end up paying more in $ s Answer the following questions on how the US MNC would set up a futures hedge? Assume the hedge is set up at time Initial margin is $ contract; Maintenance margin is $ contract The closing prices are below:
tablecontract size Mex $$ Mex$$ Mex$$ Mex$$ Mex$
What is the total gain or loss from the futures hedge and this payable if at the end of time the US MNC wish As pays the Mex$ earlier than anticipated ie pay at the end of Assume the spot rate on this same day is $$
None of these answers are correct
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