Question: #4 Using the quotations in Exhibit 7.3, note that the June 2016 Mexican peso futures contract has a price of $0.05481 per MXN. You believe

#4 Using the quotations in Exhibit 7.3, note that the June 2016 Mexican peso futures contract has a price of $0.05481 per MXN. You believe the spot price in September will be $0.06133 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?

#4 Using the quotations in Exhibit 7.3, note that the June 2016

EXHIBIT 7.3 CME Group Currency Futures Contract Quotations

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