Assume That the British Pound (£) Futures Price for September

question 111

Multiple Choice

Assume that the British pound (£) futures price for September is $1.60. Given that 62,500 units are in a British pound futures contract, the seller of British pound futures will receive $____ on the delivery date.

• A) 39,062.50
• B) 100,000
• C) 48,000
• D) 87,062.50

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Definitions:

Sales Forecast

An estimation of the amount of goods or services that will be sold within a specified future period, used for planning and managing business operations.

Expense Forecasts

Projections or estimates of future costs and expenses that a business or organization is likely to incur over a specific period.

Market Description

An overview or summary that outlines the characteristics and dynamics of a specific market, including potential customers and competitors.

Diversification

A strategy of investing in a variety of assets to reduce risks associated with any single investment.