You believe that the Australian dollar (AUD) will depreciate against the US dollar. You want to utilize futures contracts to speculate on this move and take a position worth 500,000 AUD. One (1) contract = 100,000 AUD The Spot Rate used when you open your position is $0.90/AUD The following are the daily closing $/AUD rates used to calculate the value of your account.

Open Account ($/AUD) 0.90

Day 1 0.92

Day 2 0.92

Day 3 0.91

Day 4 0.93

Day 5 0.89

Day 6 0.88

Day 7 (Close Account) 0.87

QUESTION A : What type of position would you take: Long or short?

QUESTION B: What actions will you need to take given your strategy? BE VERY SPECIFIC!!!!

QUESTION C: How much profit/loss did you make during the seven trading days. Show your calculations.