Question
Futures contract specifications for random length lumber and heating oil are shown below. Use the table of futures market to answer the question. OPEN HIGH
Futures contract specifications for random length lumber and heating oil are shown below. Use the table of futures market to answer the question.
| OPEN | HIGH | LOW | SETTLE |
Lumber 110,000 board feet; Dollars per 1,000 board feet | ||||
Jan 2019 | 385.50 | 386.70 | 378.60 | 381.50 |
Mar | 392.20 | 394.40 | 385.60 | 388.00 |
May | 388.00 | 388.00 | 379.10 | 381.80 |
July | 371.30 | 371.30 | 369.00 | 369.00 |
Heating Oil 42,000 gallons; Dollars and Cents per gallon | ||||
Jan 2019 | 3.0799 | 3.0830 | 3.0425 | 3.0506 |
Mar | 3.0360 | 3.0360 | 2.9946 | 3.0041 |
Apr | 3.0047 | 3.0078 | 2.9698 | 2.9855 |
1. Suppose you are a speculator and you go short 50 contracts of the Mar 2019 lumber contract at the opening price of the day. If you reverse your position at the settle, what will be your total overall profit or loss for the day?
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