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