5. An investor sells a futures contract an as set when the futures price is s1,500. Each contract is on 100 units the asset. The contract is closed out when the futures price is $1,540. Which of the following is true? A. The investor has made a gain of $4,000 B. The investor has made a loss of $4,000 C. The investor has made a gain of $2,000 D. The investor has made a loss of$2,000 A baker takes a long position in one July com futures contract at a futures price of 384e/bu.; the spot price currently is 315 per bu. In July the spot price turns out to be 390 u. What is the trader's gain or loss? Assume that the baker holds his position open through December. Ignore transactions costs. 6. A. Gain of 69f per bu. B. Loss of 69 per bu. C. Gain of 6e per bu. D. Loss of 6e per bu. E. Cannot be computed from the information given. 7. A farmer takes a short position in one November soybean futures contract at a futures price of 868e/bu. the spot price currently is 860g per bu. In November the spot price turns out to be 875/bu. What is the farmer's gain or loss? Assume that the farmer holds his position open through November. Ignore transactions costs. A. Gain of8 per bu. B. Gain of 7 per bu. C. Loss of 8 per bu. D. Loss of 7e per bu. E. Cannot be computed from the information given. 8. A trader takes a short position in a forward contract to sell one million euro for a price of $1.1175 per euro; spot price currently is $1.1155 per euro. The trader holds the position open to the delivery month of Decemb In December, the spot price tuns out to be $1.1200 per euro. A. The trader has made a gain of $2,500 B. The trader has made a loss of $2,500 C. The trader has made a gain of $2,000 D. The trader has made a loss of $2,000 E. remain unaffected