Using the quotations in Exhibit 7.3, note that the June 2019 Mexican peso futures
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Using the quotations in Exhibit 7.3, note that the June 2019 Mexican peso futures

4. 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 you enter into to 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?

Hint
Accounts & FinanceFutures contract: A futures contract is a legal agreement, at a predetermined price, to buy or sell the particular commodity asset, or the security at a specified time in the future. Also, this futures contracts are standardized for the quality and quantity to facilitate the trading on the futures exchange....

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