Walt Co. purchases a futures contract specifying FJ$580,500 (FJ$ stands for Fijian dollar, currency of Fiji) with the June settlement date. This futures contract is priced at $0.48/FJ$. On February 1st, Walt Co. realizes that it has no need for FJ$ in June. It thus sells a futures contract specifying FJ$580,500 with the June settlement date. This futures contract is priced at $0.44/FJ$. 

What is the result of these transactions to Walt Co?

Answer rating: 100% (QA)

Walt Co enters into a futures contract and then exits it later at a different p... View the full answer