You are short 25 gasoline futures contracts, established at an initial settle price of $1.34 per gallon,

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You are short 25 gasoline futures contracts, established at an initial settle price of $1.34 per gallon, where each contract represents 42,000 gallons. Over the subsequent four trading days, gasoline settles at $1.37, $1.32, $1.36, and $1.39, respectively. Compute the cash flows at the end of each trading day and your total profit or loss at the end of the trading period.

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Corporate Finance

ISBN: 9781260772388

13th Edition

Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe

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