Question
You are short 20 gasoline futures contracts, established at an initial settle price of $2.58 per gallon, where each contract represents 42,000 gallons. Over the
You are short 20 gasoline futures contracts, established at an initial settle price of $2.58 per gallon, where each contract represents 42,000 gallons. Over the subsequent four trading days, gasoline settles at $2.54, $2.56, $2.58, and $2.63, 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.) |
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