Tony Begay, a currency trader for Chicago based Saguaro Funds, uses the following futures quotes on the British pound () to speculate on the value of the pound a If Tony buys 5 June pound futures and the spot rate at maturity is $1 3980 1 00, what is the value of his position b If Tony sells 12 Mar...

Tony Begay, a currency trader for Chicago-based Saguaro Funds, uses the following futures quotes on the British

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Tony Begay, a currency trader for Chicago-based Saguaro Funds, uses the following futures quotes on the British pound (£) to speculate on the value of the pound. British Pound Futures, $-1.00 (CME) Maturity March June Open 1.4246 1.4164 High 1.4268 1.4188 Low 1.4214

a. If Tony buys 5 June pound futures and the spot rate at maturity is $1.3980 = £1.00, what is the value of his position?

b. If Tony sells 12 March pound futures and the spot rate at maturity is $1.4560 = £1.00, what is the value of his position?

c. If Tony buys 3 March pound futures and the spot rate at maturity is $1.4560 = £1.00, what is the value of his position?

d. If Tony sells 12 June pound futures and the spot rate at maturity is $1.3980 = £1.00, what is the value of his position?

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Multinational Business Finance

ISBN: 9780137496013

16th Edition

Authors: David K. Eiteman, Arthur I. Stonehill, Michael H. Moffett

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Question Posted: Oct 11, 2023 06:51 AM

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Tony Begay, a currency trader for Chicago-based Saguaro Funds, uses the following futures quotes on the British

Question:

British Pound Futures, $-£1.00 (CME) Maturity March June Open 1.4246 1.4164 High 1.4268 1.4188 Low 1.4214 1.4146 Settle 1.4228 1.4162 Change 0.0032 0.0030 High 1.4700 1.4550 Contract £62,500 Open Interest 25,605 809

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Interpretation Buys a futures Tony buys at the futures price and sells at the ending ...View the full answer

Multinational Business Finance

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