You Have One Short Position in Foreign Exchange Futures Contracts

Multiple Choice

You have one short position in foreign exchange futures contracts on £s.The contract size is £100,000.During the day the futures exchange rate (measured in $/£) increased by $0.01/£ while the spot exchange rate decreased by 0.01.As a result,you:

A) have won $1,000.
B) have lost $1,000.
C) have neither won nor lost any money.
D) are unable to answer based on the information provided.