The three-month futures price for the British pound is $3160/£. You expect the spot price three months from today to be $1.3680/£. The British pound contract size is £62,500. 1. If you decide to buy 68 British pound futures contracts, how much money do you need today as your initial investment other than the margin you need to post?
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To calculate the total value of the futures contracts, multiply the futures price by the contract size and the number of contracts: Total value = Futures price * Contract size * Number of contracts Total value = $3160/£ * £62,500 * 68 Show more…
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