speculate on its value. Use the following quotes and the fact that each com is for 62,500 pounds to answer the question at the end. Assume that she transacts at the closing price. British Pound Futures, US$/pound (CME)

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
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Amber McClain, a currency trader, uses futures quotes on the British pound to
speculate on its value. Use the following quotes and the fact that each contract
is for 62,500 pounds to answer the question at the end. Assume that she
transacts at the closing price.
British Pound Futures, US$/pound
(CME)
Maturity Open High Low Settle Change High
March
June
1.4246 1.4268 1.4214 1.4256 0.0032 1.47 25605
1.4164 1.4188 1.4146 1.4152 0.003 1.455 809
$587.50
If Amber sells 11 March pound futures contracts, and the spot rate at maturity is
$1.4350/£, what is the value of her position?
O-$6,462.50
O -$587.50
Open
-$7,150.00
Interest
$6,462.50
O $7,150.00
Transcribed Image Text:Amber McClain, a currency trader, uses futures quotes on the British pound to speculate on its value. Use the following quotes and the fact that each contract is for 62,500 pounds to answer the question at the end. Assume that she transacts at the closing price. British Pound Futures, US$/pound (CME) Maturity Open High Low Settle Change High March June 1.4246 1.4268 1.4214 1.4256 0.0032 1.47 25605 1.4164 1.4188 1.4146 1.4152 0.003 1.455 809 $587.50 If Amber sells 11 March pound futures contracts, and the spot rate at maturity is $1.4350/£, what is the value of her position? O-$6,462.50 O -$587.50 Open -$7,150.00 Interest $6,462.50 O $7,150.00
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