On Monday morning, an investor takes a long (Buy) position in a pound futures contract that matures on Wednesday afternoon. The agreedupon price is USD1.78 = 1 GBP for GBP 55000. At the close of trading on Monday, the futures price has risen to USD1.79 = 1 GBP. At Tuesday close, the price rises further to USD1.81 = 1 GBP. At Wednesday close, the price falls to USD1.76 = 1 GBP, and the contract matures. The investor takes delivery of the pounds at the prevailing price of USD1.76GBP.

Answer the following questions based on the above data

Question 21

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How much will the investor receive based on Monday's closing price?

a.

2750

b.

550

c.

96800

d.

1100

e.

-1100

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Question 22

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How much will the investor receive based on Tuesday's closing price?

a.

2750

b.

1100

c.

550

d.

96800

e.

-1100

Clear my choice

Question 23

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What will be the amount of profit or loss made by the investor?

a.

2750

b.

550

c.

-1100

d.

1100

e.

96800

Clear my choice

Question 24

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Marked out of 1.00

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Question text

How much will the investor pay for the delivery of Pounds on the final day?

a.

-1100

b.

1100

c.

96800

d.

2750

e.

550