Purchase Solution

Futures contract positions

Not what you're looking for?

Ask Custom Question

Can you please explain how purchasers of financial futures contracts can offset their position, and how is their gain or loss determined? What is the maximum loss to a purchaser of a futures contract?

Purchase this Solution

Solution Summary

The expert provides calculations of gains and losses resulting from trading futures

Solution Preview

A futures contract involves a commitment to buy or sell a financial instrument at a given time. The position in the stock market and thus be offset by purchasing futures contract to sell a the stock. If you own 100 shares of stock, and purchase a contract to sell the shares at $10 per share, then you can limit ...

Purchase this Solution


Free BrainMass Quizzes
Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.