a)The current USD/GBP exchange rate is 1.25 USD/GBP. A futures contract expiring in one year has the same price. A trader thinking Brexit will cause the pound to fall to .80 USD, will want to ____(1 or 2)__ the futures contract on the pound.

1)buy or long

2)sell or short

b)Each futures contract is for 62,500 pounds. Suppose the trader trades 10 contracts and is right (pound changes from $1.25 to $.80). What is the traders profit.