You are a German investor who enters into a futures contract to buy \(150,000 \mathrm{GBP}\) in four months. When you take this long position, the following data apply: Spot price of one GBP is \(€ 1.13\), the interest rate in the Eurozone is \(2 \%\), and the interest rate in UK is \(3 \%\) (both are continuously compounded and assumed constant over the following days). At market settlement, the same day, the spot price of GBP goes up to \(€ 1.15\). The day after, the settlement spot price of GBP is \(€ 1.17\). On the third day, when spot price of GBP is \(€ 1.11\), you close the contract.

- Assuming that forward and futures prices are the same, what are your cash flows?

- Your broker requires that you deposit cash on a margin account, with a margin ratio of \(25 \%\). If we neglect the time value of money, what has been the return of your investment over the three days?