Forward contract price and the futures price

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A futures contract expiring in April on Mexican pesos is avail­able now for $.08 per unit. Also, a forward contracts is available for the same settlement date at a price of $.085 per peso. How could speculators capitalize on this situation, assuming zero transaction costs? How would such speculative activity affect the difference between the forward contract price and the futures price? Write your answer in detail.

Reference no: EM131043927

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