assuming that you expect a payment of $900,000$ British

pounds on close of business day, Friday, January $26.$ Assume that you enter into

the futures position at the close of day on Tuesday, January $23.$ Futures and spot

data are provided in the file HW$1\_$data.doc. The contract size is $62,500$ British

pounds. $.$ Describe the position you decide to enter $($long or short$).$

b$.$ Describe the contract $($what month, and what quantity$).$

c$.$ Document the gain or loss due to marking to market every day that your position

is open.

d$.$ What is the total cost in US$ after you have closed out your futures positions, and

made your payment?

e$.$ What would have been the total cost in US$$,$ if you had not hedged? Did you

benefit from hedging?