Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You believe crude oil price are going to increase and long 1 contract of oil today which is January (the oil contract size is 1,000

image text in transcribed
You believe crude oil price are going to increase and long 1 contract of oil today which is January (the oil contract size is 1,000 barrels per contract). The current oil future price, for delivery in March is \\( \\$ 59.48 \\) per barrel. If erude oil is selling for \\( \\$ 62.48 \\) at the contract maturity date, what's your profitslosses? A. \\( \\$ 5,000 \\) B. \\( \\$ 2,000 \\) C. \\( \\$ 3,000 \\) D. \\( \\$ 4,000 \\)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Finance questions