On Monday morning, an investor takes a long position in a pound futures contract that matures on Thursday afternoon. The agreed upon price is $1.50. The contract size is 62,500. At the close of trading on Monday, the futures price goes to $1.65. At Tuesday close, the price goes to $1.70. At Wednesday close, the price goes to $1.45, and on Thursday close the price goes to $1.30 and the contract matures. The initial performance bond is $2500 and the maintenance performance bond is $1500. Detail the daily settlement process. What will be the investor's profit (loss)? (15 points). a. Carefully detail the daily settlement process. What will be the investor's profit (loss) for each day? What is the total profit or loss for the period? b. What would the profit or loss be if the investor had taken a short position (you do not need to detail the daily settlement process for this question? c. Why are futures contracts important in risk management and international business?