Question
You decided to speculate in the futures market selling eight June futures contracts for 1,500,000 pesos at the closing price: Mexican Peso MXN 1,500,000; $/MXN
You decided to speculate in the futures market selling eight June futures contracts for 1,500,000 pesos at the closing price:
| Mexican Peso | MXN 1,500,000; $/MXN | ||||
| Maturity | Open | High | Low | Settle | Open Interest |
| Mar | 0.1095 | 0.1099 | 0.1093 | 0.1096 | 34,481 |
| June | 0.1079 | 0.1080 | 0.1078 | 0.1077 | 3,405 |
a. What is the value of your position at maturity if the ending spot rate is $0.12000/Ps?
b. What is the value of your position at maturity if the ending spot rate is $0.09800/Ps?
c. What is the value of her position at maturity if the ending spot rate is $0.11000/Ps?
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Public Finance
Authors: H L Bhatia
30th Edition
9390080258, 978-9390080250
