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Using the quotations in Exhibit 7.3, note that the June 2019 Mexican peso futures contract has a price of $0.05143 per MXN.You believe the spot
Using the quotations in Exhibit 7.3, note that the June 2019 Mexican peso futures contract has a price of $0.05143 per MXN.You believe the spot price in June will be $0.05795 per MXN.What speculative position would youenter intoto attempt to profit from your beliefs?Calculate your anticipated profits, assuming you take a position in three contracts.What is the size of your profit (loss) if the futures price is indeed an unbiased predictor of the future spot price and this price materializes?
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