Suppose today you buy SELL 16 two-month contracts of euro futures for $1.17. A month later, you offset your position at a futures price of $1.15. Calculate your TOTAL futures profit/loss.

Question 19 options:

1)

$40,000

2)

$2,500

3)

$125,000

4)

-$0.32

5)

-$2,500

Question 20 (1 point)

Suppose you plan to transfer $8 million South African rands to the U.S. four months from today. You are afraid the South African currency will _____ in the future, at the time of transfer. To hedge this exchange rate risk, you decide to ____ South African rands.

Question 20 options:

1)	Rise; sell

2)	Fall; sell

3)

Fall; buy

4)

Rise; buy

5)	Incomplete information