Do fast answer of this general accounting question Assume you have purchased a contract for 25,000 British poundsfor $35,000. Your margin requirement is $2,000. If the value of apound increases by 0.01, what is your percentage profit?a) 10%b) 12.5%c) 15%d) 8%e) None of the above.

Step 1: Define MarginA sum of money is required to initiate and maintain any position in a foreign…

Answered: Assume you have purchased a contract…

Entrepreneurial Finance

6th Edition

ISBN:9781337635653

Author:Leach

Publisher:Leach

Chapter4A: Nopat Breakeven: Revenues Needed To Cover Total Operating Costs

Section: Chapter Questions

Problem 1EP

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Assume you have purchased a contract for 25,000 British pounds for $35,000. Your margin requirement is $2,000. If the value of a pound increases by 0.01, what is your percentage profit? a) 10% b) 12.5% c) 15% d) 8% e) None of the above.