A multinational financial institution in Chicago wishes to transfer 50,000,000 euros from bank in Berlin, Germany. The transfer will take place in February although the transaction will be hedged with March euro futures contract- which matures one month after the month of the funds transfer. Current spot exchange rate for the euro futures contract is 125,000 euros.

Notice that the Chicago firm will offset the futures position in February. Calculate the profit on the futures transaction, taking into account the total number of contracts involved.

Question options: option 3 is wrong

1)	-$2,500,000

2)	$2,500,000

3)

-$470,000

4)	$2,030,000

5)	None of the above