in $ per $ Peso 0.0687 14.5560 1 month forward 0.0500 20.0000 3 month...
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Finance
in $ per $
Peso 0.0687 14.5560
1 month forward 0.0500 20.0000
3 month forward 0.0690 14.4928
6 month forward 0.0556 17.9856
Assume that the 6-month forward rate F6m($/peso) = 0.0556. If you take a long position by buying Peso2.5 million forward at this rate, and if the spot rate 6 months later is S6m ($/peso) = 0.0501, what would be your profit (loss)?
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