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Create profit graphs for the following futures and options contracts. A profit graph is a plot of profit (on the y-axis) against the spot exchange
Create profit graphs for the following futures and options contracts. A profit graph is a plot of profit (on the y-axis) against the spot exchange rate at maturity (on the x-axis). Use the units and labels specified for each contract. Unless otherwise stated, the profit should be calculated per- unit of the underlying asset (i.e. assume quantity = 1). a. A long futures contract on the with a contract price of $1.25. List your x-axis as $/ from 1 to 1.6. Your profit should be in $.
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