Using the quotations in Exhibit $7\mathrm{.}3,$ note that the June $2021$ Mexican peso futures contract has a price of $$0\mathrm{.}05143$ per MXN$.$ You believe the spot price in June will be $$0\mathrm{.}04491$ per MXN$.$

Required:

What speculative position would you enter into to attem EXHIBIT $7\mathrm{.}3$

CME Group Currency Futures Contract Quotations

$\backslash$table$[[,$Open,High,Low,Settle,Change,$\backslash$table$[[$Open$],[$interest$]]],[$Currency Futures$],[$Japanese Yen $($CME$)-12,500,000$; $ per $100],[$June$,0\mathrm{.}90320,0\mathrm{.}90440,0\mathrm{.}90135,0\mathrm{.}90230,-0\mathrm{.}00070,153,601],[$September$,0\mathrm{.}91005,0\mathrm{.}91005,0\mathrm{.}90840,0\mathrm{.}90875,-0\mathrm{.}00070,-],[$Canadian Dollar $($CME$)-$CAD $100,000$; $ per CAD$],[$June$,0\mathrm{.}75125,0\mathrm{.}75350,0\mathrm{.}75030,0\mathrm{.}75110,0\mathrm{.}00045,144,458],[$September$,0\mathrm{.}75500,0\mathrm{.}75500,0\mathrm{.}75260,0\mathrm{.}75265,0\mathrm{.}00045,3,190],[$British Pound $($CME$)-62,500$; $ per $],[$June$,1\mathrm{.}3182,1\mathrm{.}3245,1\mathrm{.}3169,1\mathrm{.}3206,0\mathrm{.}0043,144,222],[$September$,1\mathrm{.}3243,1\mathrm{.}3298,1\mathrm{.}3238,1\mathrm{.}3263,0\mathrm{.}0043,-],[$Swiss Franc $($CME$)-$CHF $125,000$;$ per CHF$],[$June$,1\mathrm{.}0090,1\mathrm{.}0118,1\mathrm{.}0083,1\mathrm{.}0093,-,73,541],[$September$,1\mathrm{.}0169,1\mathrm{.}0181,1\mathrm{.}0159,1\mathrm{.}0179,-,42],[$Australian Dollar $($CME$)-$AUD $100,000$; $ per AUD$],[$June$,0\mathrm{.}7080,0\mathrm{.}7141,0\mathrm{.}7065,0\mathrm{.}7128,0\mathrm{.}0054,148,024],[$September$,0\mathrm{.}7094,0\mathrm{.}7149,0\mathrm{.}7083,0\mathrm{.}7141,0\mathrm{.}0054,-],[$Mexican Peso $($CME$)-$MXN $500,000$; $ per MXN$],[$June$,0\mathrm{.}05142,,0\mathrm{.}05134,0\mathrm{.}05143,,227,270],[$Euro $($CME$)-125,000$; $ per $],[$June$,1\mathrm{.}12720,1\mathrm{.}13260,1\mathrm{.}12720,1\mathrm{.}13100,0\mathrm{.}00405,480,009],[$September$,1\mathrm{.}13610,1\mathrm{.}14100,1\mathrm{.}13610,1\mathrm{.}13955,0\mathrm{.}00405,8,844],[$Euro$/$Japanese Yen $($ICE$-$US$)-125,000$; $$per $],[$June$,124\mathrm{.}802,125\mathrm{.}52,124\mathrm{.}68,125\mathrm{.}35,0\mathrm{.}55,-],[-,-,-,-,125\mathrm{.}45,0\mathrm{.}57,0],[$Euro$/$ British Pound $($ICE$-$US$)-125,000$;$$ per $],[$June$,0\mathrm{.}85485,0\mathrm{.}85800,0\mathrm{.}85245,0\mathrm{.}85645,-,27,741],[$September$,-,0\mathrm{.}85940,0\mathrm{.}85740,0\mathrm{.}85920,-,54],[$Euro$/$Swiss Franc $($ICE$-$US$)-125,000$;CHF per $],[$June$,1\mathrm{.}1174,1\mathrm{.}1208,1\mathrm{.}1173,1\mathrm{.}1206,\mathrm{.}0035,10,623]]$

Sources:All quotations are April $3\mathrm{.}2019$ values from the CME Group website,

www$.$cmegroup.com$/$trading$/$fx$/.$pt 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?