6. James bought a 3-month British pound futures contract for USD1.4400/Pound only to see the dollar appreciates to a value of USD1.4250 at which time he sold the pound futures.

a. If each pound futures contract is for an amount of 62,500 Pound, how much money did James gain or lose from his speculation with pound futures?(2 marks)

b. If this is an options contract, what will be the profit or loss?

(2 marks)

7. By using demand and supply graphs, discuss how interest rate differential between Malaysia and Thailand can both weaken and strengthen Malaysian Ringgit against Thai Baht with relevant theories.(10 marks)