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On June 15, a US firm is planning to import Mexican caviar worth Pesos 2 million...

On June 15, a US firm is planning to import Mexican caviar worth Pesos 2 million due on July 15 (one month later). The firm decides to hedge its payables position by using September peso futures. The spot rate on June 15 is US$ 0.0630 / peso and the September futures price on June 15 is at $0.0665 per peso. One month late on July 15, the spot rate is $0.0570 / peso while the September futures price is $0.0615 / peso. Assume contract size is 2 million pesos.

What is the total net cost of APs in US $ to the U.S. importer?

a.

$104,000
b.

None of the other answers
c.

$145,000
d.

$124,000
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