Question 2 (10 Marks) On Monday morning, and investor enters a futures contract that matures on Wednesday afternoon. The agree price is $1.95/E for 562,500. At the close of trading on Monday, the futures price has risen to $1.96/E. At Tuesday close, the price rises further to $1.98/f At Wednesday close, the price falls to $1.9555/E, and the contract matures. The investor takes delivery of the pounds at the price of $1.9555 a. Detail the daily settlement process. Ignore margin requirements Action Cash Flow Monday Open Investor buys a pound futures None contract that matures in two days Monday Close Futures price rises to $1.96/f Contract is marked-to-market Tuesday Close Futures price rises to $1.98/ Contract is marked-to-market Wednesday Future price falls to $1.955/ 2) Investor takes delivery of Close 1) Contract is marked-to-market 62,500. b. What will be the investor's net gain/loss