Question

1. Saguaro Funds.Tony Begay , a currency trader for Chicago-based Black River Investments, uses the following futures quotes on the British pound to speculate on the value of the British pound. British Pound Futures,

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 3 March pound futures, and the spot rate at maturity is $1.4560/pound, what is the value of position?

b) If Tony sells 12 June pound futures, and the spot rate at maturity is $1.3980/pound, what is the value of position?

Answer 1

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Answer:

Contract size is 62500 pounds

a)

b)