Question
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. |
None of the other answers |
|
| b. |
$124,000 |
|
| c. |
$104,000 |
|
| d. |
$145,000 |
Homework Answers
Answer #1
SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE
ANSWER : b : 124000
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