Question
You are short 15 gasoline futures contracts, established at an initial settle price of $2.48 per gallon, where each contract represents 42,000 gallons. Over the
You are short 15 gasoline futures contracts, established at an initial settle price of $2.48 per gallon, where each contract represents 42,000 gallons. Over the subsequent four trading days, gasoline settles at $2.46, $2.49, $2.52, and $2.54, respectively. |
a. | Calculate the profit or loss for each trading day. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) |
b. | Compute your total profit or loss at the end of the trading period. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started