Question: 1. Consider a trader who takes a long position in a six-month futures contract on the euro. The forward rate is $1.75 = 1.00; the

1. Consider a trader who takes a long position in a six-month futures contract on the euro. The forward rate is $1.75 = 1.00; the contract size is 62,500. At the maturity of the contract the spot exchange rate is $1.65 = 1.00 (10 pts)

a. The trader has lost $625.

b. The trader has lost $6,250.

c. The trader has made $6,250.

d. The trader has lost $66,287.88

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