Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Irading Caleulating Profit or Loss (P/L) Your future PiL today would be $270 if you close your position. Profit and loss of futures contracts is

image text in transcribed
image text in transcribed
image text in transcribed
Irading Caleulating Profit or Loss (P/L) Your future PiL today would be $270 if you close your position. Profit and loss of futures contracts is ca'culated based on contract size, current price, purchase price, and minimum tick price or size. Tick moves is the number of moves the futures contract has moved since you purchased it. See the calculation below: Close Position The final profit or loss of the trade is realized when the trade is closed. Roll Futures contracts that are about to expire can be rolled over to a longer-dated contract in order to maintain the same position following expiry. The roll involves selling the front-month contract already held to buy a similar contract but with longer time to maturity. Irading Caleulating Profit or Loss (P/L) Your future PiL today would be $270 if you close your position. Profit and loss of futures contracts is ca'culated based on contract size, current price, purchase price, and minimum tick price or size. Tick moves is the number of moves the futures contract has moved since you purchased it. See the calculation below: Close Position The final profit or loss of the trade is realized when the trade is closed. Roll Futures contracts that are about to expire can be rolled over to a longer-dated contract in order to maintain the same position following expiry. The roll involves selling the front-month contract already held to buy a similar contract but with longer time to maturity

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_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

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

Get Started

Recommended Textbook for

Innovation In Public Transport Finance

Authors: Shishir Mathur

1st Edition

1138250139, 978-1138250130

More Books

Students also viewed these Finance questions