A futures contract on copper traded at the Chicago Mercantile Exchange has a denomination of 25,000...
A futures contract on copper traded at the Chicago Mercantile Exchange has a denomination of 25,000 pounds. Today you enter into a long futures position of 10 contracts on copper at $3.43 per pound, maturing in 6 months. If copper is trading at $3.75 at maturity, what is your net profit from this position?
Homework Answers
Net profit from position = Number of contracts x lot size x (Maturity price - buy price)
= 10 *25000 *(3.75 - 3.43)
= 80000
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A futures contract on copper traded at the Chicago Mercantile
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