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Exercise on speculating in the commodity market Suppose a speculator expecting an increase in aluminum price takes a position in the market by buying 10

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Exercise on speculating in the commodity market Suppose a speculator expecting an increase in aluminum price takes a position in the market by buying 10 contracts for delivery in March 2022 at USD3170 per ton. As March approaches price may either move up to USD 3400 per ton or move southward to USD 3100 per ton. Margin 10% Activity: What will be the profit and loss potential in the scenario described above? Exercise on speculating in the commodity market Suppose a speculator expecting an increase in aluminum price takes a position in the market by buying 10 contracts for delivery in March 2022 at USD3170 per ton. As March approaches price may either move up to USD 3400 per ton or move southward to USD 3100 per ton. Margin 10% Activity: What will be the profit and loss potential in the scenario described above

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