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

Question 9
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