An investor believes that the euro will strengthen against the dollar over the next three months and would like to take a position with a value of 250,000. He could purchase euros in the spot market at 0.80$/ or purchase two futures contracts at 0.83$/ with an initial margin of $10,000. Compute the profit from the following:

1. Purchasing euros in the spot market if the spot rate in three months is 0.85$/ (2 marks)
2. Purchasing euros in the spot market if the spot rate in three months is 0.75$/ (2 marks)
3. Purchasing the futures contract if the spot rate in three months is 0.85$/ (1 marks)
4. Purchasing the futures contract if the spot rate in three months is 0.75$/ (1 marks)