Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

4 8 . In August 2 0 2 2 a company takes a short position in a contract on April 2 0 2 3 platinum

48. In August 2022 a company takes a short position in a contract on April 2023 platinum futures.
It closes out its position in February 2023. The futures price (per ounce) is $1444.20 when it enters the contract, $1467.16 when it closes out its position, and $1458.13 at the end of December 2022.
One contract is for the delivery of 1,500 ounces platinum. What is the company's total gain or loss?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Finance questions