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05-10-2022
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on monday morning, an investor takes a long position in a pound futures contract that matures on wednesday afternoon. the agreed-upon price is $1.78 for £62,500. at the close of trading on monday, the futures price has risen to $1.79. at tuesday close, the price rises further to $1.80. at wednesday close, the price falls to $1.785, and the contract matures. the investor takes delivery of the pounds at the prevailing price of $1.785. detail the daily settlement process (see exhibit 7.3). what will be the investor's profit (loss)?

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