Assume that as of Oct 15, a futures contract specifying 125,000 Euro and a December settlement date is priced at $1.16 per Euro. In Oct, Speculators expect the Euro will appreciate. What can speculators do?

Buy futures contracts on Euro or Sell futures contract on EURO

Assume that as of Oct 15, a futures contract specifying 125,000 Euro and a December settlement date is priced at $1.16 per Euro. In Oct, Speculators expect the Euro will appreciate. Assume that on the settlement date, the spot rate of the Euro is $ 1.19. What is the gain/loss on the futures positions you pick in question 1?

a. Net Gain of $3,750

b. Net Loss of $3,750

c. Net gain of $7,500

d. Net loss of $7,500