Question $5$

Now March $2022,$ an investor in the USA is considering speculating British pound to strengthen relative to the USD over the next $3$ months, using $300,000$ pounds as the initial investment. The March spot exchange rate is $$1\mathrm{.}5130/$pound$.$ The June spot is predicted to be $$1\mathrm{.}60/$pound or $$1\mathrm{.}50/$pound$.$ CME offers various currency futures contracts on the sterling pound. One futures contract is $75,000$ pounds and requires an initial margin of $$5,000$ for each contract. Currently, the USD$/$pound futures are available for June, July, and August maturity at $$2\mathrm{.}10,$ $$1\mathrm{.}51,$ and $$3\mathrm{.}61$ respectively. They are priced today at $$1\mathrm{.}510.$ Assuming the June price is $$1\mathrm{.}60/$pound$,$ illustrate the possible outcome of the speculation using the spot and futures contracts.