$/Pound Futures Prices June 2020 contract $1.2750 $1.2650 $1.2550 $1.2450 DATE |Apr. 8 Apr. 9 Apr. 10 Apr. 15 Apr. 16 Apr. 17 Apr. 20 Apr. 21 Apr. 22 Apr. 24 Apr. 27 Apr. 28 Apr. 29 Apr. 30 May.1 May.4 May 5 May.6 May.7 May.11 May. 12 May.13 May.14 May.15 May.18 May.19 May.20 May.21 May.22 May.26 May.27 May 28 May.29 JUNE POUND Futures Futures Spot Price divided Price by date by Spot $1.2400 $ 1.2384 1.0013 $1.2455 $ 1.2459 0.9997 $1.2462 $ 1.2447 1.0012 $1.2556 $ 1.2521 1.0028 $1.2462 $ 1.2458 1.0003 $1.2493 $ 1.2500 0.9994 $1.2448 $ 1.2434 1.0011 $1.2284 $ 1.2294 0.9992 $1.2322 $ 1.2335 0.9989 $1.2355 $ 1.2365 0.9992 $1.2425 $ 1.2429 0.9997 $1.2436 $ 1.2426 1.0008 $1.2454 $ 1.2468 0.9989 $1.26021 $ 1.2594 1.0006 $1.2488 $ 1.2493 0.9996 $1.2442 $ 1.2443 0.9999 $1.2455 $ 1.2435 1.0016 $1.2347 $ 1.2341 1.0005 $1.2359 $ 1.2362 0.9998 $1.2332 $ 1.2334 0.9998 $1.2282 $ 1.2260 1.0018 $1.2221 $ 1.2235 0.9989 $1.2196 $ 1.2231 0.9971 $1.2118 $ 1.2106 1.0010 $1.2193 $ 1.2195 0.9998 $1.2287 $ 1.2251 1.0029 $1.2231 $ 1.2237 0.9995 $1.2236 $ 1.2220 1.0013 $1.2170 $ 1.2159 1.0009 $1.2343 $ 1.2335 1.0006 $1.2256 $ 1.2258 0.9998 $1.2344 S 1.2322 1.0018 $1.2326 $ 1.2349 0.9981 $1.2350 N $1.2250 $1.2150 Apr. 20 Apr. 22 Apr. 27 Apr. 16 Apr, 8 Apr. 10 May 29 May 27 May 22 May.20 May 18 May 12 May 14 May.7 Apr. 29 May 1 May 5 Series1 -Series2 $ A. Its now Apr-8 (refer to data table). You need to buy 500,000 Pounds on May-29. Enter on #A answer space the value of 500,000 Pounds now at Apr-8 Spot price. $ B. (refer to data table). If you did not hedge, buying 500,000 Pounds on May 29 would have what value $ at May 29 Spot price. $ diff. 1. Spts IF not hedging, the difference (-$' = loss, paid more, '+$' =gain, paid less) from buying the 500,000 Pounds on May 29 compared to Spot value on Apr.8 is (fill in answ. box) $ C. WITH HEDGING On Apr.8 assume you bought June Pound futures at $1.2400/P. Enter on #C answer the value of the 500,000 Pounds at the Futures price on Apr.8 $ D. It's now May 29 (assume you bought June futures on Apr.8 at the $1.2400/P price) You close your 500,000 Pounds futures position on May 29 at the futures price of $1.2326/P. Enter on #D answer space the Futures value of the 500,000 Pounds at May 29 Futures price. $ difference 2. Spts Enter the $ amount of the Futures position GAIN (+$) or LOSS (-5) $ 3. 3pts NET $ effect on May 29 with Futures hedge started on Apr.8 Enter combined NET amount from answers to #1 and #2
