You speculate that exchange between Dollar and Turkish Lira will be $.37/TL in June and you want to trade June expiration futures contract with settlement price of $.33/TL. However, in May the June contract is sold for $.30/TL and you decide to close your position. If the notional amount is TL350,000, calculate your profit/loss. (We are in April).

Question 8 options:

a)

Loss of $10,500

b)

Profit of $10,500

c)

Loss of $7,000

d)

Profit of $7,000