Assume that a call option has an exercise price of $1. At a spot price of $1.45/, the call option has 2.Jack Hemmings bought a 3-month British pound...

1.Assume that a call option has an exercise price of $1.50/£. At a spot price of $1.45/£, the call option has

2.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?

3.  Suppose you purchase a June call option with a strike price of $1.46. When the contract matures in June the underlying price is $1.48. The cost of the option and the profit/loss at maturity are: