An investor enters into a short 3 months forward contract to sell 100,000 British pounds for US dollars. Use the rates in the table to indicate what position the investor will take and calculate the gain/loss of the transaction.

Table Spot and forward quotes of the USD/GBP exchange rate

Maturity	Bid	Offer
Spot	1.2732	1.2736
1-month forward	1.2746	1.2751
3-month forward	1.2772	1.2777
1-year forward	1.2883	1.2889

1. If the exchange rate at the end of the contract is 1.24 the investor is obligated to _______ ( answer) pounds.
2. If the exchange rate at the end of the contract is 1.24 the investor will invest in pounds at a price of ______ (answer) when they are worth 1.24
3. The investor will make a ______ (answer)
4. The gain/loss of the transaction is _____ (answer)
5. If the exchange rate at the end of the contract is 1.34 the investor is obligated to _____ ( answer) pounds.
6. If the exchange rate at the end of the contract is 1.34 the investor will invest in pounds at a price of _____( answer) when they are worth 1.34.
7. The investor will make a _____ ( answer)
8. The gain/loss of the transaction is _____ ( answer)