Laura Cervantes. Laura Cervantes, the currency speculator we met in the chapter, sells eight June futures contracts for 500,000 pesos (Ps) at the closing price quoted in: a. What is the value of her position at maturity if the ending spot rate is $0.12003 = Ps1.00? b. What is the value of her position at maturity if the ending spot rate is $0.09809 = Ps1.00? c. What is the value of her position at maturity if the ending spot rate is $0.11002 = Ps1.00? (Round to the nearest cent. Use a minus sign if value is negative.) a. What is the value of her position at maturity if the ending spot rate is $0.12003 = Ps1.00? The value of Amber's position is $ b. What is the value of her position at maturity if the ending spot rate is $0.09809 = Ps1.00? The value of Amber's position is $ The value of Amber's position is $ (Round to the nearest cent. Use a minus sign if value is negative.) c. What is the value of her position at maturity if the ending spot rate is $0.11002 = Ps1.00? (Round to the nearest cent. Use a minus sign if value is negative.) Data table (Click on the following icon in order to copy its contents into a spreadsheet.) Mexican Peso (CME)-MXN 500,000; USD per MXN Lifetime Maturity March June Sept Open High Low Settle Change 0.10953 0.10988 0.10930 0.10958 0.10790 0.10795 0.10778 0.10773 0.10615 0.10615 0.10610 0.10573 High Low 0.11000 0.09770 0.10800 0.09730 0.10615 0.09930 Open Interest 34,481.00 3,405.00 1,481.00

International Financial Management
14th Edition
ISBN:9780357130698
Author:Madura
Publisher:Madura
Chapter5: Currency Derivatives
Section: Chapter Questions
Problem 3BIC
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Laura Cervantes. Laura Cervantes, the currency speculator we met in the chapter, sells eight June futures contracts for 500,000 pesos (Ps) at the closing price quoted in:
a. What is the value of her position at maturity if the ending spot rate is $0.12003 = Ps1.00?
b. What is the value of her position at maturity if the ending spot rate is $0.09809 = Ps1.00?
c. What is the value of her position at maturity if the ending spot rate is $0.11002 = Ps1.00?
(Round to the nearest cent. Use a minus sign if value is negative.)
a. What is the value of her position at maturity if the ending spot rate is $0.12003 = Ps1.00?
The value of Amber's position is $
b. What is the value of her position at maturity if the ending spot rate is $0.09809 = Ps1.00?
The value of Amber's position is $
The value of Amber's position is $ (Round to the nearest cent. Use a minus sign if value is negative.)
c. What is the value of her position at maturity if the ending spot rate is $0.11002 = Ps1.00?
(Round to the nearest cent. Use a minus sign if value is negative.)
Data table
(Click on the following icon in order to copy its contents into a spreadsheet.)
Mexican Peso (CME)-MXN 500,000; USD per MXN
Lifetime
Maturity
March
June
Sept
Open High
Low Settle Change
0.10953 0.10988 0.10930 0.10958
0.10790 0.10795 0.10778 0.10773
0.10615 0.10615 0.10610 0.10573
High
Low
0.11000 0.09770
0.10800 0.09730
0.10615 0.09930
Open Interest
34,481.00
3,405.00
1,481.00
Transcribed Image Text:Laura Cervantes. Laura Cervantes, the currency speculator we met in the chapter, sells eight June futures contracts for 500,000 pesos (Ps) at the closing price quoted in: a. What is the value of her position at maturity if the ending spot rate is $0.12003 = Ps1.00? b. What is the value of her position at maturity if the ending spot rate is $0.09809 = Ps1.00? c. What is the value of her position at maturity if the ending spot rate is $0.11002 = Ps1.00? (Round to the nearest cent. Use a minus sign if value is negative.) a. What is the value of her position at maturity if the ending spot rate is $0.12003 = Ps1.00? The value of Amber's position is $ b. What is the value of her position at maturity if the ending spot rate is $0.09809 = Ps1.00? The value of Amber's position is $ The value of Amber's position is $ (Round to the nearest cent. Use a minus sign if value is negative.) c. What is the value of her position at maturity if the ending spot rate is $0.11002 = Ps1.00? (Round to the nearest cent. Use a minus sign if value is negative.) Data table (Click on the following icon in order to copy its contents into a spreadsheet.) Mexican Peso (CME)-MXN 500,000; USD per MXN Lifetime Maturity March June Sept Open High Low Settle Change 0.10953 0.10988 0.10930 0.10958 0.10790 0.10795 0.10778 0.10773 0.10615 0.10615 0.10610 0.10573 High Low 0.11000 0.09770 0.10800 0.09730 0.10615 0.09930 Open Interest 34,481.00 3,405.00 1,481.00
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