Tony Begay, a currency trader for Chicago-based Saguaro Funds, uses

Tony Begay, a currency trader for Chicago-based Saguaro Funds, uses the following futures quotes on the British pound (£) to speculate on the value of the pound.

 

British Pound Futures, US$/pound (CME)










Contract = 62,500 pounds














Open
Maturity
Open
High
Low
Settle
Change
High
Interest
March
 1.4246
 1.4268
 1.4214
 1.4228
 0.0032
 1.4700
 25,605
June
 1.4164
 1.4188
 1.4146
 1.4162
 0.0030
 1.4550
 809


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?

Maturity
Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest...

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