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17. Price Movements of Currency Futures Assume that on November 1, the spot rate of the British pound was $1.58 and the price on a
17. Price Movements of Currency Futures Assume that on November 1, the spot rate of the British pound was $1.58 and the price on a December futures contract was $1.59. Assume that the pound depreciated during November so that by November 30 it was worth $1.51. a. What do you think happened to the futures price over the month of November? Why? b. If you had known that this would occur, would you have purchased or sold a December futures con- tract in pounds on November 1? Explain
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