Suppose the futures price on May 16 for a June 18 contract is $1.15 and the spot price on May 16 is $1.148. What is Stark's total dollar cost if Stark hedges with a futures contract and the futures price on February 15 for a June 18 contract is $1.09? When you calculate "total dollar cost" include the dollar cost of the deposit payment (calculated in question 1), the profit/loss on the futures contract, and the payment to purchase Swiss Francs in the spot market on May 16. If there is a profit/loss on the futures contact, multiply the profit/loss by -1 when calculating cost since a positive profit would represent a negative cost. As described in the Case, the long futures contract that Stark enters into on February 15 is offset with a short futures contract on May 16. Given marking to market, Stark realizes all profits/losses associated with the long futures contract by May 16 when the contract is offset. Once the contract is offset there are no future profits or losses