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You are a currency for a Chicago-based investment firm and you use futures to speculate on the value of the British pound. Use the futures
You are a currency for a Chicago-based investment firm and you use futures to speculate on the value of the British pound. Use the futures quote in the table below to calculate your futures position: Maturity Open High Low Settle Change High Open Interest
June 1.4164
You buy 5 June futures contracts based upon the ending settlement value per the table above. The spot rate at maturity is $1.3980/GBP. What is the value of your position? Note: 1 futures contract represents 62,500 GBP
Group of answer choices
-$5,687.50
-$7,312.50
$5,687.50
-$1,137.50
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