A bank customer will be going to London in June to purchase 100,000 in new inventory. The

Question:

A bank customer will be going to London in June to purchase ₤100,000 in new inventory. The current spot and futures exchange rates are as follows:

Exchange Rates (Dollars/Pound)
Period Rate
Spot ............ 1.5342
March .......... 1.6212
June ........... 1.6901
September .......... 1.7549
December ......... 1.8416