Assume you have purchased a contract for 25,000 British pounds for $35,000.Your margin requirement is $2,000.If the value of a pound increases .01,what is your percentage profit?

Name: Assume you have purchased a contract for 25,000 British pounds for $35,000.Your margin requirement is $2,000.If the value of a pound increases .01,what is your percentage profit?
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Question

Quizplus · Accepted Answer

The increase in value is 25,000 pounds * $0.01 = $250. The percentage profit is calculated as ($250 / $2,000) * 100 = 12.5%.

Assume You Have Purchased a Contract for 25,000 British Pounds