Suppose that, as of July 1st, a futures contract specifying 500,000 HK dollars and an November settlement date is priced at $0.18. On July 1st, John expects the HK dollar to appreciate and buys a total of 6 futures contracts.

Suppose that, as of July 1st, a futures contract specifying 500,000 HK dollars and an November settlement date is priced at $0.18. On July 1st, John expects the HK dollar to appreciate and buys a total of 6 futures contracts.
a. Assume that, on November 1st (the settlement date), the spot rate of the HK dollar is
$0.20. Calculate the total speculation profits (or losses).
b. Assume that, on November 1st (the settlement date), the spot rate of the HK dollar is
$0.17. Calculate the total speculation profits (or losses)