Suppose that on the hedge lifting date in February the value of the euro has dropped to $1.25. Also on this date, the March euro futures price is $1.24. Calculate the profit or loss on the spot position.

Question options:

1)	-$2,500,000
2)	$2,500,000
3)	-$2,030,000
4)	-$500,000

Suppose you buy an asset for $70 and sell a futures contract for $72 to hedge this asset. What is your overall hedge profit if, prior to maturity, you sell the asset for $75 and the futures price at that time is $78?

Question 9 options:

1)	-$1
3)	$1
4)	-$6
5)	None of the above