Question 1

a. In January, an investor buys one crude oil futures contract expiring in June. One contract specifies delivery of 1,000 barrels of crude oil. The contract has a price of $58 per barrel at the time of purchase. One month later the futures contract price is $57.75. What is the profit (gain) or loss for the long position?

b. In December, an investor sells (shorts) one E-micro gold futures contract expiring in April. One contract specifies delivery of 10 troy ounces of gold. The contract has a price of $1,247 per troy ounce at the time of the sale. One month later the futures contract price is $1,258. What is the profit (gain) or loss for the short position?