1. On May 1^st you go long and enter 10 July platinum contracts with a futures price of $1200.00 per ounce. Each contract is for 50 ounces. On the July delivery date, the spot price for platinum is $1150.00 per ounce. What is your profit on the transaction?

A. Profit $25,000

B. Profit $2,500

C. Loss $2,500

D. Loss $25,000

2. An investor puts $1000 in a utility index fund with a dividend yield of 2%. The one-year futures price for the fund is $1020. The investor hedges by selling/shorting one contract today. What will be the investors net profit in a year?

A. Profit $40

B. Profit $30

C. Loss $30

D. Loss $40