Tony Begay at Saguaro Funds. 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.If Tony buys 5 June pound futures and the spot rate at maturity is $1.3980 = £1.00, what is the value of his position?If Tony sells 12 March pound futures and the spot rate at maturity is $1.4560 = £1.00, what is the value of his position?If Tony buys 3 March pound futures and the spot rate at maturity is $1.4560 = £1.00, what is the value of his position?If Tony sells 12 June pound futures and the spot rate at maturity is $1.3980 = £1.00, what is the value of his position? ### British Pound Futures, $=£1.00 (CME)#### Contract Specifications- **Contract Size:** £62,500#### Futures Data| Maturity | Open | High | Low | Settle | Change | High | Open 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 |#### ExplanationThis table illustrates the data for British Pound futures contracts on the CME, converted at a rate of $=£1.00. It shows information for two maturities: March and June. - **Open:** The opening price for the futures contract.- **High:** The highest price reached during the trading period.- **Low:** The lowest price reached during the trading period.- **Settle:** The closing settlement price for the futures contract.- **Change:** The difference in the settlement price from the previous day.- **High (Column):** The highest price reached in the contract history.- **Open Interest:** The total number of outstanding contracts as of the date of the data.This data provides insight into the price movements and market activity for these futures, which can be vital for hedging and speculation in currency markets.

Honor Code: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts for you. Please re-post the entire question together with the sub-parts that need to be solved if you need the remaining sub-part to be solved. A future contract highlights the financial derivatives that obligate the buyer or seller to trade the underlying possession at a preset price in the future. It is employed to hedge price fluctuations and prevent unforeseen losses. Tradeable future agreements are also available for almost all commodities and foreign currency. 1. The contract is worth £62,500. The contracts bought are 5. The maturity is in June and the spot rate at maturity is $1.3980/£1. The settled future price for the June contract is $1.4162/£1. The contract is bought which indicates that the buyer bought the contract for $1.4162/£1 and sold it for $1.3980/£1. The contract's notional value is: Computation of the notional value: Notional Value=Contract Value×Contracts Bought=£62,500×5=£312,500 Deduct the future rate from the spot rate to compute the return and multiply the result by the notional value to compute the position's value. Determination of position's value: Position's Value=Notional Value×Spot Rate-Future Rate=£312,500×$1.3980-$1.4162=£312,500×-$0.01820=-$5,687.50 1. Thus, the position's value is -$5,687.50.2. The contract is worth £62,500. The contracts bought are 12. The maturity is in March and the spot rate at maturity is $1.4560/£1. The settled future price for the June contract is $1.4228/£1. The contract is sold which indicates that the buyer sold the contract for $1.4228/£1 and later bought it for $1.4560/£1. The contract's notional value is: Computation of notional value: Notional Value=Contract Value×Contracts Bought=£62,500×12=£750,000 Subtract the spot rate from the future rate to compute the return from sales and then multiply the result by the notional value to derive the position's value. Calculation of the position's value: Position's Value=Notional Value×Future Rate-Spot Rate=£312,500×$1.4228-$1.4560=£312,500×-$0.0332=-$24,900 Hence, the position's value is -$24,900.3. The contract is worth £62,500. The contracts bought are 3. The maturity is in March and the spot rate at maturity is $1.4560/£1. The settled future price for the March contract is $1.4228/£1. The contract is bought which indicates that the buyer bought the contract for $1.4228/£1 and sold it for $1.4560/£1. The contract's notional value is: Computation of the notional value: Notional Value=Contract Value×Contracts Bought=£62,500×3=£187,500 Deduct the future rate from the spot rate to compute the return and multiply the result by the notional value to compute the position's value. Determination of position's value: Position's Value=Notional Value×Spot Rate-Future Rate=£312,500×$1.4560-$1.4228=£312,500×$0.0332=$6,225 3. Therefore, the position's value is $6,225.