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You are short 25 gasoline futures contracts, established at an initial settle price of $1.34 per gallon, where each contract represents 42,000 gallons. Over the

You are short 25 gasoline futures contracts, established at an initial settle price of $1.34 per gallon, where each contract represents 42,000 gallons. Over the subsequent four trading days, gasoline settles at $1.37, $1.32, $1.36, and $1.39, respectively.

a.

Compute the cash flows at the end of each trading day. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations.)

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.)

Day 1:

Day 2:

Day 3:

Day 4:

Total profit or loss:

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