1. You bought a 3-month British pound futures contract for $1.25/. At the time you closed your futures position, the futures price was .625/$. If each pound futures contract is for an amount of 62,500, what is your profit/loss in terms of dollars?

A. -10,937.5 B. -21,875 C.21,875 D.10,937.5

2. Three days ago, you entered into a futures contract to buy five futures contracts (each with 62,500 attached) at $2.25 per . Over the past three days the contract has settled at $2.20, $2.22, and $2.27. How much have you made or lost?

A. -6250 B.1250 C.6250 D. -1250

3. Use the following information to answer the next 3 questions

After reading several reports, an investment banker believes that the dollar will depreciate relative to the euro over the next few days. The banker decides to use five euro futures contracts to trade based on his belief. Each contract has 100,000 euros attached. The initial and maintenance margin is 15000 and 10000 per contract, respectively. The futures price on the day the banker opened his position (Tuesday) was $1.625.

The futures price on Wednesday is $1.605. Find the investor's ending margin balance on Wednesday. (Assume any deficits are eliminated to keep the account open and any excess funds remain in the account)

A. 8000 B. 65000 C. 85000 D. 75000

4. The futures price on Thursday is $1.55. Find the investor's ending margin balance on Thursday. (Assume any deficits are eliminated to keep the account open and any excess funds remain in the account)

A. 37,500 B. 75,000 C. 112,500 D. 57,500

5. The futures price on Friday is $1.60. Find the investor's ending margin balance on Friday. (Assume any deficits are eliminated to keep the account open and any excess funds remain in the account)

A. 62,500 B. 87,500 C. 100,000 D. 75,000