22-117 Assume that the hedge was placed at the rates in question 114,and that the BP futures contract is trading at $1.62/£.Assume the futures contract has some days remaining to maturity.What will be the gain or loss on the hedge if it is unwound at this price?
A)$4,280,000 loss.
B)$4,000,000 loss.
C)$4,280,000 gain.
D)$4,000,000 gain.
E)$6,400,000 gain.

Question

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The Answer of 22-117 Assume that the hedge was placed at the rates in question 114,and that the BP futures contract is trading at $1.62/£.Assume the futures contract has some days remaining to maturity.What will be the gain or loss on the hedge if it is unwound at this price?
A)$4,280,000 loss.
B)$4,000,000 loss.
C)$4,280,000 gain.
D)$4,000,000 gain.
E)$6,400,000 gain.

22-117 Assume That the Hedge Was Placed at the Rates