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 thepounda. If Tony buys 5 June pound futures, and the spot rate at maturity is $1.3981/, what is the value of her position?b. If Tony sells 12 March pound futures, and the spot rate at maturity is $1.4559/E, what is the value of her position?c. If Tony buys 3 March pound futures, and the spot rate at maturity is $1.4550, what is the value of her position?d. If Tony sells 12 June pound futures, and the spot rate at maturity is $1.3981/C, what is the value of her position?CIDa. If Tony buys 5 June pound futures, and the spot rate at maturity is $1.3981/2, what is the value of her position?The value of Tony's position is $(Round to the nearest cent. Use a minus sign if value is negative) If TonThe valuData tableomOpen1.42461.416415 31.398 172, what is the value of her position?(Click on the icon to import the table into a spreadsheet.)British Pound Futures, US$/pound (CME)MaturityMarchJuneLowChangeHighSettle1.4268 1.4214 1.4228 0.00321.41881.41461.41620.0030PrintDoneContract = 62,500 poundsOpen InterestHigh1.47001.455025,605809-X

a. Number of contracts bought = 5 Spot rate at maturity =$1.3981 /£1Forward rate = $1.4162/£The…

Tony Begay at Saguaro Funds. Tony Begay, a currency trader for Chicago-based Saguaro Funds, uses the following futures quotes on the British pound (C) to speculate on the value of the pound a. If Tony buys 5 June pound futures, and the spot rate at maturity is $1.3961, what is the value of her position? b. If Tony sells 12 March pound futures, and the spot rate at maturity is $1.4559%, what is the value of her position? e. If Tony buys 3 March pound futures, and the spot rate at maturity is $1.4550, what is the value of her position? d. If Tony sells 12 June pound futures, and the spot rate at maturity is $1.3081/E, what is the value of her position? a. If Tony buys 5 June pound futures, and the spot rate at maturity is $1.3981/8, 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)

Tony Begay at Saguaro Funds. Tony Begay, a currency trader for Chicago-based Saguaro Funds, uses the following futures quotes on the British pound (C) to speculate on the value of the pound a. If Tony buys 5 June pound futures, and the spot rate at maturity is $1.3961, what is the value of her position? b. If Tony sells 12 March pound futures, and the spot rate at maturity is $1.4559%, what is the value of her position? e. If Tony buys 3 March pound futures, and the spot rate at maturity is $1.4550, what is the value of her position? d. If Tony sells 12 June pound futures, and the spot rate at maturity is $1.3081/E, what is the value of her position? a. If Tony buys 5 June pound futures, and the spot rate at maturity is $1.3981/8, 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)

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/£,…
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Tony Begay at Saguaro Funds. Tony Begay, a currency trader for Chicago-based Saguaro Funds, uses the following futures quotes, E, 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/£, what is the value of her position? b. If Tony sells 12 March pound futures, and the spot rate at maturity is $1.4558/£, what is the value of her position? c. If Tony buys 3 March pound futures, and the spot rate at maturity is $1.4558/£, what is the value of her position? d. If Tony sells 12 June pound futures, and the spot rate at maturity is $1.3982/£, 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.)
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