Example: speculating with futures Looking at the CME data on FX futures, two speculators, A and B see the following information: Australian dollar futures Contract size: AUD 100,000 Initial performance bond: 1815 USD per contract June 2014 contract quoted at 0.8945 USD/AUD Brazilian Real futures Contract size: 100,000 BRL Initial performance bond: 3410 USD per contract June 2014 contract quoted at 0.4128 USD/BRL The two speculators start out with USD 30,000 each, and A believes that the AUD will appreciate against the USD by 3% from now until June, while B believes that the BRL will depreciate against the USD by 4% from now until June. What position (long or short) and how many contracts can each speculators take with the amount of money he has ? Assuming both speculators are right, what is the return on investment of A and B respectively? How much money will each of them end up with