QUESTION 3 Maximum loss with 95% confidence level = Ele:)-(1.65 x 0p) Maximum loss with 97.5% confidence level = E(et)-(1.96 x 0p) You expect that Mexican peso will depreciate by 1% for the next month. The current spot exchange rate is of percentage changes in Mexican peso is 6%. Use the value-at-risk (VaR) method to determine the max the next month at the 95 percent confidential level. 20 points Save Answer 65 x 0p) 1.96 x 0p) e next month. The current spot exchange rate is MXN14/USD. The monthly standard deviation alue-at-risk (VaR) method to determine the maximum percentage loss of the Mexican peso over IM 26 L Q V !!! 10pt x RBC 15 1 - +] QUESTION 3 Maximum loss with 95% confidence level = Ele:)-(1.65 x 0p) Maximum loss with 97.5% confidence level = E(et)-(1.96 x 0p) You expect that Mexican peso will depreciate by 1% for the next month. The current spot exchange rate is of percentage changes in Mexican peso is 6%. Use the value-at-risk (VaR) method to determine the max the next month at the 95 percent confidential level. 20 points Save Answer 65 x 0p) 1.96 x 0p) e next month. The current spot exchange rate is MXN14/USD. The monthly standard deviation alue-at-risk (VaR) method to determine the maximum percentage loss of the Mexican peso over IM 26 L Q V !!! 10pt x RBC 15 1 - +]