Question

on the British pound (£) to Tony Begay at Saguaro Funds. Tony Begay, a currency trader for Chicago-based Saguaro Funds, uses the following futures quotes, speculate on the value of the pound. a. If Tony buys 5 June pound futures, and the spot rate at maturity is $1.3985/£, what is the value of her position? b. If Tony sells 12 March pound futures, and the spot rate at maturity is $1.4556/£, what is the value of her position? c. If Tony buys 3 March pound futures, and the spot rate at maturity is $1.4556/£, what is the value of her position? d. If Tony sells 12 June pound futures, and the spot rate at maturity is $1.3985/£, what is the value of her position? a. If Tony buys 5 June pound futures, and the spot rate at maturity is $1.3985/£, what is the value of her position? The value of Tony's position is $ (Round to the nearest cont. Use a minus sign if value is negative)

please round to the nearest cent or whatever it asks from you in the instructions

Answer 1

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

- 2x LD NPV, IRR, PBP,OCFINDEX - Microsoft Excel (Product Activation Failed) File Home Insert Page Layout Formulas Data Review View Add-Ins % Cut Σ AutoSum : A Calibri 11 A A = = = V Wrap Text General E Copy Fill Paste A SF BIU - D Merge Merge & Center - Center $ % % , 4:0 .00 :.: Conditional Format Cell Format Painter Insert Delete Format Sort & Find & Formatting as Table Styles 2 Clear Filter Select Clipboard Font E Alignment Number Styles Cells Editing KP141 KN KO KP K Q KR KS K T KU KV KW KX KY KZ LA LB LC 141 142 BUYS 5 JUNE POUND FUTURES, SO WE SAY SHE IS LONG ON CONTRACT 143 NOTIONAL PRINCIPAL = 62,500 x 5 = 312500 144 Long = Notional principal x (Spot-Future) 145 VALUE OF POSITION = 312,500 x (1.3985 - 1.4162) = -5531.25 [LOSS] 146 147 SELLS 12 MARCH POUND FUTURES, SO WE SAY SHE IS SHORT ON CONTRACT 148 NOTIONAL PRINCIPAL = 62,500 x 12 = 750000 149 Short = - Notional principal x (Spot - Future) VALUE OF POSITION = -750,000 x (1.4556 - 1.4228) = -24600.00 [LOSS] 151 152 BUYS 3 MARCH POUND FUTURES 153 NOTIONAL PRINCIPAL = 62,500 x 3 = 187500 154 Long = Notional principal x (Spot - Future) 155 VALUE OF POSITION = 187,500 x (1.4556 - 1.4228) = 6150.00 [PROFIT] 156 157 SELLS 12 JUNE POUND FUTURES 158 NOTIONAL PRINCIPAL = 62,500 x 12 = 750000 159 Short = - Notional principal x (Spot - Future) 160 VALUE OF POSITION = -750,000 x (1.3985- 1.4162) = 13275.00 [PROFIT] 161 O CF CASH FLOW STATW FCFARM, MSI,confidenceINDEX CURRENCY LOAN CROSS OVER HEDGING MONEY MARKET GM HPR AM TAX GROWTH SUST_PREF AND DIV POLICY Rea ferences 203 120% ELEB * * 10 ENG 150 K 1 + 30-10-2019