1. The three-month futures price for the British pound is $1.3160/. You expect the spot price three months from today to be $1.2690/. The British pound futures contract size is 62,500. a. If you are a speculator would you buy the futures contracts or short (sell) them. Explain your answer in your own words. b. How much profit would you make if you trade 62 contracts and your expectations come true? c. If you were an MNC with A/R (accounts receivables) of 24 million due in three months that you want to hedge, would you buy or sell the pound futures. Explain your answer in your answer in your own words. d. How many contracts would you be able buy or sell? How much would be your pound A/R worth in dollars