Kayla is a speculator in the market for a rare French goat cheese known as Crottin de Chavignol. She entered into a futures

contract with farmers from the small town of Chavignol, where the cheese is produced. The futures contract specifies that

after $45$ months, Kayla will purchase $5000$ kilograms $($ kg $)$ of Crottin de Chavignol at $$\frac{230}{k}g.$ When the specified number

months has passed, the price of Crottin de Chavignol is $$\frac{170}{k}g.$ What is Kayla's profit per kilogram? Please denote losses

with a negative sign.

Profit per kilogram $=$$

Which statement is NOT true about futures contracts?

Many futures contracts are settled in cash that

do not require actual delivery of the

commodity.

Few people have the space or resources to

purchase commodity futures.

Futures markets can help to reduce

investor risk.

The futures markets are used as a prime tool

for speculators.