Tony Begay, a currency trader for Chicago-based Saguaro Funds, uses futures quotes on the British pound (?)
Question:
Tony Begay, a currency trader for Chicago-based Saguaro Funds, uses futures quotes on the British pound (?) to speculate on the value of the pound. Use the futures quotes in the table to answer the following questions.
Required:
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?
Multinational Business Finance
ISBN: 978-0133879872
14th edition
Authors: David K. Eiteman, Arthur I. Stonehill, Michael H. Moffett