RiskofCurrencyFutures. Currencyfuturesmar$-$ kets are commonly used as a means of capitaliz$-$ing on shifts in currency values, because the valueof a futures contract tends to move in line with the change in the corresponding currency value. Re$-$ cently, many currencies appreciated against the dol$-$ lar. Most speculators anticipated that these curren$-$ cies would continue to strengthen and took large buy positions in currency futures. However, theFed intervened in the foreign exchange market by immediately selling foreign currencies in exchange for dollars, causing an abrupt decline in the values of foreign currencies $($as the dollar strengthened$).$ Participants that had purchased currency futures contracts incurred large losses. One floor broker re$-$ sponded to the effects of the Feds intervention by immediately selling $300$ futures contracts on British pounds $($with a value of about $$30$ million$).$ Such ac$-$ tions caused even more panic in the futures market.a$.$ Explain why the central banks intervention caused such panic among currency futures traders with buy positions.b$.$ Explain why the floor brokers willingness to sell $300$ pound futures contracts at the going market rate aroused such concern. What might this action signal to other brokers?c$.$ Explain why speculators with short $($sell$)$ posi$-$ tions could benefit as a result of the central banks intervention.d$.$ Some traders with buy positions may have re$-$ sponded immediately to the central banks inter$-$ vention by selling futures contracts. Why would some speculators with buy positions leave their po$-$ sitions unchanged or even increase their positions by purchasing more futures contracts in response to the central banks intervention