Tony Begay, a currency trader for Chicago-based Saguaro Funds, uses the following futures quotes on the British pound (£) to speculate on the value of the pound.

 

British Pound Futures, US$/pound (CME)														Contract = 62,500 pounds
														Open
Maturity		Open		High		Low		Settle		Change		High		Interest
March		1.4246		1.4268		1.4214		1.4228		0.0032		1.4700		25,605
June		1.4164		1.4188		1.4146		1.4162		0.0030		1.4550		809

a. If Tony buys 5 June pound futures, and the spot rate at maturity is $1.3980/£, what is the value of her position?
b. If Tony sells 12 March pound futures, and the spot rate at maturity is $1.4560/£, what is the value of her position?
c. If Tony buys 3 March pound futures, and the spot rate at maturity is $1.4560/£, what is the value of her position?
d. If Tony sells 12 June pound futures, and the spot rate at maturity is $1.3980/£, what is the value of her position?

Transcribed Image Text:

British Pound Futares, USS/pound(CMu) Contract -62,500pands Open Interest Settle Change High aturity arch June High Lou 14246 14164 141881414614162 00030 14550 14263 14228 13T0 0.0052 1.4700 25,605