Use the following information to answer the next five questions: The three$-$month futures price for the British pound is $$\frac{1\mathrm{.}2720}{}.$

You expect the spot price three months from today to be $$\frac{1\mathrm{.}2460}{}$ and your friend expects that spot to be $$\frac{1\mathrm{.}3280}{}.$ The British

pound futures contract size is $62,500.$ If you and your friend are speculators would you and your friend buy the futures contracts

or sell them.

I would buy the pound futures and my friend would sell them

I would sell the pound futures and my friend would buy them

Both of us would sell the pound futures

Both of us would buy the pound futures