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How could the company capitalize on this situation

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Reference no: EM133162734

Question - Assume that a March futures contract on Mexican pesos was available in January for $.09 per unit. Also, assume that forward contracts were available for the same settlement date at a price of $.092 per peso.

1) How could the company capitalize on this situation, assuming zero transaction costs?

2) How would such speculative activity affect the difference between the forward contract price and the futures price?

Reference no: EM133162734

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