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?

EXHIBIT 7.3 CME Group Currency Futures Contract Quotations Open High Low Settle Change Open interest Currency Futures Japanese Yen (CME)-v12,500,000; $ per 100% June .90320 .90440 90135 90230 -.00070 153,601 Sept .91005 .91005 .90840 .90875 .00070 292 Canadian Dollar (CME)-CAD 100,000; $ per CAD June .75125 .75350 .75030 .75110 00045 144,458 Sept .75500 75500 .75260 75265 00045 3,190 British Pound (CME)-162,500; $ perf une 1.3182 1.3245 1.3169 1.3206 0043 144,222 Sept 1.3243 1.3298 1.3238 1.3263 .0043 671 Swiss Franc (CME)-CHF 125,000; $ per CHF June 1.0090 1.0118 1.0083 1.0093 0006 73,541 Sept 1.0169 1.0181 1.0159 1.0179 0006 42 Australian Dollar (CME)-AUD 100,000; $ per AUD June 7080 7141 .7065 7128 0054 148,024 Sept .7094 7149 .7083 7141 0054 322 Mexican Peso (CME)-MXN 500,000; $ per MXN June 05142 05171 05134 .05143 .0000 227,270 Euro (CME)-(125,000; $ pert June 1.12720 1.13260 1.12720 1.13100 00405 480,009 Sept 1.13610 1.14100 1.13610 1.13955 00405 8.844 Euro/Japanese Yen (ICE-US)-6125,000: * perE june 124.80 125.52 124.68 125.35 55 24,228 Euro/British Pound (ICE-US)