Question

Day	1	2	3	4	5
Futures Price	109	107	106	107	104

Suppose oil futures prices are as given in the above table​(price per​ barrel). Suppose you sell 100 crude oil futures ​contracts, each for 1000 barrels of crude​ oil, at the current futures price of​ $108 per barrel on day 0. What is your profit/loss in your margin account from the end of day 4 to the end of day 5?

Answer 1

criven He sell 100 crude oil future contracts future contrat = 1000 barrels. Note: You lower When you sell a future contract, can make a gain when the price is than the price that you enter in futures contract.

Day Future mice gain I loss 108 109 .. loss = 109–108] x 1000 barrels x 100 controete 1x 1000x 100 ' =) 100,000 loy gain . = (109–107) x 1000 X 100 = {2,00,000 gain) 1 106 gain - (107–106]X 1000 X 100 => 1,00,000 gain 4 107 Lov = (107–106)X 11000 x 100 = 100,00 low 5 104 gain = {107 -104] x 1,000. X 100 trip ido fuit = 13,00.000 faina! He is asking what is your profpt I loss in your margin account from end of day 4 to and of day s. =) 100,000 lors + 3,00,000 gain op 2,00,000 gain