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British Pound Futures, $=£1.00 (CME) Maturity Open High March 1.4246 1.4268 June 1.4164 1.4188 Low Settle 1.4214 1.4228 1.4146 1.4162 Change 0.0032 0.0030 High 1.4700 1.4550 Contract = £62,500 Open Interest 25,605 809

British Pound Futures, $=£1.00 (CME) Maturity Open High March 1.4246 1.4268 June 1.4164 1.4188 Low Settle 1.4214 1.4228 1.4146 1.4162 Change 0.0032 0.0030 High 1.4700 1.4550 Contract = £62,500 Open Interest 25,605 809

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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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.

  1. 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?
  2. 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?
  3. 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?
  4. 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 | #### Explanation This 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.
Transcribed Image Text:### 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 | #### Explanation This 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.
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