Foreign exchange fx futures pricing compute the 180-day, Financial Management

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Foreign exchange fx futures pricing compute the 180-day

TOPIC :Foreign Exchange (FX) Futures pricing

Assume that (1) the current U.S. dollar spot exchange rates for the British Pound (BP) and Mexican Peso (MP) currencies are $1.30000/BP and $0.05400/MP, respectively. Also, the 180-day U.S. and Mexican Libor interest rates are 1.50000% and 6.70000%, respectively.

(a) Compute the 180-day US/MP futures price.

(b) If the 180-day BP futures price is $1.30585/BP, what is the implied 180-day British Libor rate?

(d) What should be the 180-day BP/MP futures price?

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Financial Management: Foreign exchange fx futures pricing compute the 180-day

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Financial Management: Foreign exchange fx futures pricing compute the 180-day

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