Explore BrainMass

Explore BrainMass

    Losses/gains on a futures contract

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

    You are long one CME Dec sterling future of contract size £62.500. Mon closing of the future was 1.8212 USD/GBP. On Tues, the price rose to 1.8289; on Wed the price changed to 1.8275. Calculate your profit/loss in USD on Tue and Wed.

    © BrainMass Inc. brainmass.com February 24, 2021, 2:34 pm ad1c9bdddf
    https://brainmass.com/economics/contracts/losses-gains-futures-contract-30139

    Solution Preview

    See the attached file.
    Contract size= £ 62,500
    Day ...

    Solution Summary

    The losses/gains on a futures contract (due to daily mark to market) are calculated for 2 days.

    $2.19

    ADVERTISEMENT