Answer:
a. The trader buys 5 June Swiss franc futures at a settlement price of 0.8234. The value of the position is:
Value = (Settlement price - Purchase price) x Contract size x Number of contracts
Value = (0.7963 - 0.8234) x CHF62.500 x 5
Value = -0.0271 x CHF312,500
Value = -CHF8,687.50
Therefore, the value of the trader's position is -CHF8,687.50.
b. The trader sells 12 March Swiss franc futures at a settlement price of 0.8528. The value of the position is:
Value = (Sale price - Settlement price) x Contract size x Number of contracts
Value = (0.8963 - 0.8528) x CHF62.500 x 12
Value = 0.0435 x CHF750,000
Value = CHF32,625
Therefore, the value of the trader's position is CHF32,625.
c. The trader buys 3 March Swiss franc futures at a settlement price of 0.8528. The value of the position is:
Value = (Settlement price - Purchase price) x Contract size x Number of contracts
Value = (0.8963 - 0.8528) x CHF62.500 x 3
Value = 0.0435 x CHF187,500
Value = CHF8,156.25
Therefore, the value of the trader's position is CHF8,156.25.
d. The trader sells 12 June Swiss franc futures at a settlement price of 0.8234. The value of the position is:
Value = (Sale price - Settlement price) x Contract size x Number of contracts
Value = (0.7963 - 0.8234) x CHF62.500 x 12
Value = -0.0271 x CHF750,000
Value = -CHF20,325
Therefore, the value of the trader's position is -CHF20,325.
Step-by-step explanation: