Girton plc is a UK business that has recently purchased machinery from a US supplier. Girton plc expects to pay $600,000 in three months’ time for this purchase. To hedge against foreign exchange risk, the business uses currency futures. US$ futures contracts are currently trading at £/$1.40, which is also the current spot rate. The contract size is £62,500, the tick size is $0.01 and the tick value is $6.25 per tick.
What is the total gain or loss from trading futures contracts if, in three months’ time, the futures price is £/$1.35? (Work to the nearest contract)