Assume you take a short position on one contract of size mp, Financial Management

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Assume you take a short position on one contract of size mp

Suppose that the December Mexican peso futures contract has a price of $0.10/MP. You believe the spot price in December will be $0.09/MP.

Assume you take a short position on one contract of size MP 500,000. What would be your profit/loss if the exchange rate turns out to be $0.11/MP?

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Financial Management: Assume you take a short position on one contract of size mp

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