1. An investor enters into a short forward contract to sell 100,000 British pounds for US dollars at an exchange rate of 1.4000 US dollars per pound. How much does the investor gain or lose if the exchange rate at the end of the contract is. (a) 1.3900 and (b) 1.4200? A hedger takes a long position in an oil futures contract on November 1, 2009 to hedge an exposure on March 1, 2010. The Initial futures price is $60. On December 31, 1999 the futures price is $61. On March 1, 2010 it is $64. The contract is closed out on March 1, 2010. What gain is recognized? Each contract is on 1000 barrels of oil