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1. A company takes the long position in a futures contract for British Pounds. The settlement price at the time of entering the contract was 1.5885 [USD/GBP] and the contract calls for the delivery of 62,500 [GBP]. The initial and maintenance margin are the same, $3,600. The table presents the evolution of the settlement price sampled every week. Show the evolution of the margin account and the gains or losses of the contract.

Week	Settlement
1	1.5942
2	1.5888
3	1.5886
4	1.5977

2. Suppose you will receive 625,000 [GBP] in December. Decide if the cheapest alternative is to enter into a futures contract, do nothing, or buy an option with strike price 1.30 [USD/GBP]. Use at least one year worth of daily data to calculate the probability distribution for GBP. The futures contract data is found in the CME website.

3. A U.S. based company have to pay 1 million Argentinean Pesos (ARS) in five months. Since the ARS is very volatile, the company decides to enter into a FX swap. Set the swap. The interest rate in Argentina is 26.5% per year, the ARS spot price is 0.0568 [USD/ARS] and the interest rate in the U.S. is 1.23% per year.

Instructions:

Print the exam and your answers, also print the supporting data which is:

question	Supporting data
1	Table showing the evolution of the margin account, the gains and losses for every week, etc.. Also, the final gains or losses for the contract
2	Histogram for the British Pound, frequency table, relative frequencies, expected values, final conclusion on what is the best alternative
3	What are the transactions for the near and far dates, calculations for the exchange rate used at the end of the contract