Question: Question 30 1 pts Here are direct spot and forward markets quotes for MXN over three points in time now (1/1/XX), one month later (2/1/XX),
Question 30 1 pts Here are direct spot and forward markets quotes for MXN over three points in time now (1/1/XX), one month later (2/1/XX), three months later (4/1/XX), and six months later (7/1/XX). 7/1/XX 0.0955 MXN Spot 1 Month Forward 3 Month Forward 6 Month Forward 1/1/XX 0.0891 0.0904 0.0918 0.0932 2/1/XX 0.0949 0.0963 0.0977 0.0992 4/1/XX 0.0900 0.0914 0.0928 0.0942 0.0969 0.0984 0.0999 On 1/1/XX, IBM bought a 1 month forward contract of MXN 1,000,000 from Bank One. Based on this transaction today (1/1/XX) IBM will pay to Bank One and Bank One will pay IBM OMXN 1,000,000 USD 89.100 O USD 89,100: MXN 1,000,000 O nothing: nothing O USD 90.400: MXN 1,000,000
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