1. On Monday morning, an investor takes a long position in a pound futures contract that matures on Wednesday afternoon. The agreed price is $1.95 for 62,500. At the close of trading on Monday, the futures price has risen to $1.96. At Tuesday close, the price rises further to $1.98. At Wednesday close, the price falls to $1.955, and the contract matures. The investor takes delivery of the pounds at the prevailing spot price of $1.955. Assume that the broker asks for an initial performance bond of $4,500 and a maintenance performance bond of $3,500. a) Detail the daily settlement process using a table similar to the one we used in class. b) What will be the investor's profit or loss