If you hedge the same exposure as above by a forward contract but not the futures contract,

answer the following questions. $($We assume that the futures exchange rates and the forward

exchange rates are the same and that there is no credit risk in trading the forward contracts.$)$

f$.$ What is your hedging position $($to buy or to sell$)$ using the GBPUSD forwards? $(2$ points$)$

g$.$ Who may be your counterparty? $(2$ points$)$

h$.$ What is the total cumulative profit or loss on this forward position as of October $5?(4$

points$)$

i$.$ What is the total cumulative profit or loss on this forward position as of October $6?(4$

points$)$

j$.$ Does anything happen on October $6?$ Why? $(4$ points$)$