Jack Hemmings Bought a 3-Month British Pound Futures Contract for $1.4400/£

question 34

Multiple Choice

Jack Hemmings bought a 3-month British pound futures contract for $1.4400/£ only to see the dollar appreciate to a value of $1.4250 at which time he sold the pound futures. If each pound futures contract is for an amount of £62,500, how much money did Jack gain or lose from his speculation with pound futures?

• A) $937.50 loss
• B) $937.50 gain
• C) £937.50 loss
• D) £937.50 gain

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Definitions:

Transference

In psychotherapy, the process by which patients unconsciously redirect feelings and desires from a significant person in their past to the therapist.

Genuineness

The quality of being truly what something or someone is said to be; authenticity, especially valuable in the context of therapeutic relationships.

Empathy

is the ability to understand and share the feelings of another, a crucial skill in effective communication and relationship-building.

Neacsiu and Linehan

Refer to researchers associated with Dialectical Behavior Therapy and its development, particularly in the treatment of borderline personality disorder.