As it turns out , you were correct when you purchased four contracts for feeder cattle at 88.8, as the spot price on cattle rose to 101.2 on the delivery date given in your contracts. How much money did you make? What was your return on invested capital?© BrainMass Inc. brainmass.com June 4, 2020, 12:39 am ad1c9bdddf
The volume per contract is 50,000 pounds
The profit per contract = (101.2-88.8) X 50,000/100 = ...
The solution explains how to calculate the profit and rate of return of a contract.