June 2014 Q1

No of contracts sell on 6 months futures, I thought the future price should be used to calculate the contract, 5060000/1.0659/125000=37.98, even we still use 38 contracts, but is different from examiner’s answer. Why did he use lock-in rate to calculate the contracts 5060000/1.0651/125000?

Also in this question, examiner didn’t work out the gains on futures and options. When we sell option at exercise price 1.07, we will exercise and gain 49 basis, hence the total payment will be reduced. I get confused if I should calculate the gains in the examine. Sometimes he did work out the gains in other years’ examines, sometimes he didn’t?

Many thanks.