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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. a. If Tony buys 5 June pound futures, and the spot rate at maturity is $1.3982 = £1.00, what is the value of her position? b. If Tony sells 12 March pound futures, and the spot rate at maturity is $1.4558 = £1.00, what is the value of her position? c. If Tony buys 3 March pound futures, and the spot rate at maturity is $1.4558 = £1.00, what is the value of her position? d. If Tony sells 12 June pound futures, and the spot rate at maturity is $1.3982 = £1.00, what is the value of her position? a. If Tony buys 5 June pound futures, and the spot rate at maturity is $1.3982/£, what is the value of her position? The value of Tony's position is $ (Round to the nearest cent. Use a minus sign if value is negative.) b. If Tony sells 12 March pound futures, and the spot rate at maturity is $1.4558/£, what is the value of her position? The value of Tony's position is $. (Round to the nearest cent. Use a minus sign if value is negative.) c. If Tony buys 3 March pound futures, and the spot rate at maturity is $1.4558/£, what is the value of her position? The value of Tony's position is $ (Round to the nearest cent. Use a minus sign if value is negative.) d. If Tony sells 12 June pound futures, and the spot rate at maturity is $1.3982/£, what is the value of her position? The value of Tony's position is $ (Round to the nearest cent. Use a minus sign if value is negative.) Data table (Click on the following icon in order to copy its contents into a spreadsheet.) British Pound Futures, $ £1.00 (CME) Maturity March June Open 1.4246 1.4164 ... High Low 1.4268 1.4214 1.4188 Settle 1.4228 1.4146 1.4162 Print Change 0.0032 0.0030 Done High 1.4700 1.4550 Contract = £62,500 Open Interest 25,605 809 X

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. a. If Tony buys 5 June pound futures, and the spot rate at maturity is $1.3982 = £1.00, what is the value of her position? b. If Tony sells 12 March pound futures, and the spot rate at maturity is $1.4558 = £1.00, what is the value of her position? c. If Tony buys 3 March pound futures, and the spot rate at maturity is $1.4558 = £1.00, what is the value of her position? d. If Tony sells 12 June pound futures, and the spot rate at maturity is $1.3982 = £1.00, what is the value of her position? a. If Tony buys 5 June pound futures, and the spot rate at maturity is $1.3982/£, what is the value of her position? The value of Tony's position is $ (Round to the nearest cent. Use a minus sign if value is negative.) b. If Tony sells 12 March pound futures, and the spot rate at maturity is $1.4558/£, what is the value of her position? The value of Tony's position is $. (Round to the nearest cent. Use a minus sign if value is negative.) c. If Tony buys 3 March pound futures, and the spot rate at maturity is $1.4558/£, what is the value of her position? The value of Tony's position is $ (Round to the nearest cent. Use a minus sign if value is negative.) d. If Tony sells 12 June pound futures, and the spot rate at maturity is $1.3982/£, what is the value of her position? The value of Tony's position is $ (Round to the nearest cent. Use a minus sign if value is negative.) Data table (Click on the following icon in order to copy its contents into a spreadsheet.) British Pound Futures, $ £1.00 (CME) Maturity March June Open 1.4246 1.4164 ... High Low 1.4268 1.4214 1.4188 Settle 1.4228 1.4146 1.4162 Print Change 0.0032 0.0030 Done High 1.4700 1.4550 Contract = £62,500 Open Interest 25,605 809 X

International Financial Management
International Financial Management
14th Edition
ISBN:9780357130698
Author:Madura
Publisher:Madura
Chapter5: Currency Derivatives
Section: Chapter Questions
Problem 3BIC
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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. a. If Tony buys 5 June pound futures, and the spot rate at maturity is $1.3982 = £1.00, what is the value of her position? b. If Tony sells 12 March pound futures, and the spot rate at maturity is $1.4558 = £1.00, what is the value of her position? c. If Tony buys 3 March pound futures, and the spot rate at maturity is $1.4558 = £1.00, what is the value of her position? d. If Tony sells 12 June pound futures, and the spot rate at maturity is $1.3982 = £1.00, what is the value of her position? a. If Tony buys 5 June pound futures, and the spot rate at maturity is $1.3982/£, what is the value of her position? The value of Tony's position is $. (Round to the nearest cent. Use a minus sign if value is negative.) b. If Tony sells 12 March pound futures, and the spot rate at maturity is $1.4558/£, what is the value of her position? The value of Tony's position is $ (Round to the nearest cent. Use a minus sign if value is negative.) c. If Tony buys 3 March pound futures, and the spot rate at maturity is $1.4558/£, what is the value of her position? The value of Tony's position is $ (Round to the nearest cent. Use a minus sign if value is negative.) d. If Tony sells 12 June pound futures, and the spot rate at maturity is $1.3982/£, what is the value of her position? The value of Tony's position is $ (Round to the nearest cent. Use a minus sign if value is negative.) Data table (Click on the following icon in order to copy its contents into a spreadsheet.) British Pound Futures, $ = £1.00 (CME) Maturity March June Open 1.4246 1.4164 High 1.4268 1.4188 ... Low 1.4214 1.4146 Print Settle 1.4228 1.4162 Change 0.0032 0.0030 Done High 1.4700 1.4550 Contract = £62,500 Open Interest 25,605 809 X
Transcribed Image Text: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. a. If Tony buys 5 June pound futures, and the spot rate at maturity is $1.3982 = £1.00, what is the value of her position? b. If Tony sells 12 March pound futures, and the spot rate at maturity is $1.4558 = £1.00, what is the value of her position? c. If Tony buys 3 March pound futures, and the spot rate at maturity is $1.4558 = £1.00, what is the value of her position? d. If Tony sells 12 June pound futures, and the spot rate at maturity is $1.3982 = £1.00, what is the value of her position? a. If Tony buys 5 June pound futures, and the spot rate at maturity is $1.3982/£, what is the value of her position? The value of Tony's position is $. (Round to the nearest cent. Use a minus sign if value is negative.) b. If Tony sells 12 March pound futures, and the spot rate at maturity is $1.4558/£, what is the value of her position? The value of Tony's position is $ (Round to the nearest cent. Use a minus sign if value is negative.) c. If Tony buys 3 March pound futures, and the spot rate at maturity is $1.4558/£, what is the value of her position? The value of Tony's position is $ (Round to the nearest cent. Use a minus sign if value is negative.) d. If Tony sells 12 June pound futures, and the spot rate at maturity is $1.3982/£, what is the value of her position? The value of Tony's position is $ (Round to the nearest cent. Use a minus sign if value is negative.) Data table (Click on the following icon in order to copy its contents into a spreadsheet.) British Pound Futures, $ = £1.00 (CME) Maturity March June Open 1.4246 1.4164 High 1.4268 1.4188 ... Low 1.4214 1.4146 Print Settle 1.4228 1.4162 Change 0.0032 0.0030 Done High 1.4700 1.4550 Contract = £62,500 Open Interest 25,605 809 X
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