Explore BrainMass
Share

Explore BrainMass

    Futures and Net Cash Flow

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    On March 1, you contract to take delivery of 1 ounce of gold for $415. The agreement is good for any day up to April 1. Throughout March, the price of gold hit a low of $385 and hit a high of $435. The price settled on March 31 at $420, and on April 1st you settle your futures agreement at that price. Your net cash flow is:

    Can you help me understand this question?

    © BrainMass Inc. brainmass.com October 10, 2019, 3:54 am ad1c9bdddf
    https://brainmass.com/business/futures/futures-net-cash-flow-440845

    Solution Preview

    Under the futures contract you will pay $415 to take delivery of 1 ounce of gold. ...

    Solution Summary

    The solution determines the futures and net cash flow.

    $2.19