Answer and Explanation:
The computation is shown below:
Given that
June Futures Contract = 500000 Pesos (MXN)
And Number of Contracts Sold = 8
And, Initial Exchange Rate = 0.10773 $ / MXN
Now
Initial Position Value is
= 8 × 500000 × 0.10773
= $430920
Now
(a) The value of her position is
Final Exchange Rate = $0.12002 / MXN
Final Position Value is
= 8 × 500000 × 0.12002
= $480080
So,
Net Position Value is
= 430920 - 480080
= - $49160
And,
(b) The value of her position is
Final Exchange Rate = $0.09802 / MXN
Final Position Value is
= 8 × 500000 × 0.09802
= $392080
So,
Net Position Value is
= 430920 - 392080
= $38840