7. Michael Polin, a currency trader for New York investment firm, uses the following British pound futures quotes to speculate on the value of the British pound. (4 points each)

a. If Michael buys 5 June pound futures, and the spot rate at maturity is $1.3980/pound, what is the value of his position?

b. If Michael sells 12 March pound futures, and the spot rate at maturity is $1.4560/pound, what is the value of his position?

c. If Michael buys 3 March pound futures, and the spot rate at maturity is $1.4560/pound, what is the value of his position?

d. If Michael sells 12 June pound futures, and the spot rate at maturity is $1.3980/pound, what is the value of his position?

British Pound Futures, US$/pound (CME) Size of One Contact=62,500 pounds

Maturity	Open	High	Low	Settle	Change	High	Low	Open Interest
March	1.4246	1.4268	1.4214	1.4228	0.0032	1.4700	1.3810	25,605
June	1.4164	1.4188	1.4146	1.4162	0.0030	1.4550	1.3910	809