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