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Suppose that, as of April 4,2021 a futures contract specifying 500,000 Mexican pesos and a June settlement date is priced at $0.09. On April 4,

Suppose that, as of April 4,2021 a futures contract specifying 500,000 Mexican pesos and a June settlement date is priced at $0.09. On April 4, speculators who expect the peso to decline sell futures contracts on pesos. Assume that, on June 17 (the settlement date), the spot rate of the peso is $0.08.

What should the speculator do?

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