Future Contracts
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Please refer to the attached chart. Suppose you sell nine March 2009 silver futures contracts on February 12, 2009, at the last price of the day.
Question:
(a) What will your profit or loss be if silver prices turn out to be $14.61 per ounce at expiration? Input the amount as positive value. Round your answer to the nearest whole dollar amount. (e.g., 32.))
Net: $_________
(b) What if silver prices are $12.63 per ounce at expiration? Input the amount as positive value. Round your answer to the nearest whole dollar amount. (e.g., 32.))
Net:$___________
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Solution Summary
Profit/Loss on silver futures contracts have been calculated.
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Please see the attached file:
Suppose you sell nine March 2009 silver futures contracts on February 12, 2009, at the last price of the day.
Question:
Silver March Contract
Contract Size= 5000 ounce
Closing price= 1351 cents/ounce= $13.51 per ounce
Contracts sold= 9
Since the contracts have been sold, we gain if the price at expiration falls and we lose if the price at ...
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