Assume that an American importer in March of a year needs to pay SF500,000 three months later. The current spot exchange rate is SF1=$0.500. To avoid the risk of CHF appreciation in three months time, we decided to buy 4 CHF futures contracts due in June (each contract at SF125000) traded at SF1=$0.5100. The Swiss franc did indeed appreciate in June, with the spot rate at SF1=$0.7000 and the price of the Swiss franc futures contract rising to SF1=$0.7100.

 If commission, margin and interest are not taken into account, try to calculate the net profit and loss of the importer.