Sheila Simpson thinks that the U.K. pound will cost $1.44/ in six months. A 6-month currency futures contract is available today at a rate of $1.40/. If Sheila was to speculate in the currency futures market, and spot rate at the settlement day is $1.32/, calculate her profit/loss (contract size is 62,500).

Question 10 options:

a)

2,500

b)

-2,500

c)

-3,750

d)

-5,000