Please anwser both You decide to short seven July futures contracts of GBP 100,000 each....
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Please anwser both
You decide to short seven July futures contracts of GBP 100,000 each. The spot rate is 0.72 GBP/USD, the 30-day forward rate is 0.70 GBP/USD, your expectation is 0.75 GBP/USD in July. If your expectation proves to be correct, how much profit or loss will you make?
| a. USD -21,000 | ||
| b. USD 21,000 | ||
| c. GBP -21,000 | ||
| d. GBP -21,000 |
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Is the following option ITM, ATM or OTM? And what are its payoff (or intrinsic value) and profit or loss, respectively? Long Put, premium CAD0.01, strike rate CAD/USD is 1.30, spot rate CAD/USD is 1.28.
a. ITM, CAD0.02, CAD0.01 profit
b. ATM, CAD0.01, CAD0.01 profit
c. OTM, CAD0.00, CAD0.01 loss
d. ITM, CAD0.01, CAD0.02 profit
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