Assume you are a speculator. On
February 24th, you sold three AUG20
soybean contracts for the opening price traded that day. Later in
the day, you bought three AUG20 soybean contracts at the
low price of the day. Assume there was a $20 broker fee to execute
the round trade. Did you earn a profit or a loss?
Calculate your profit/loss. Answer must be in dollars and cents and be reported out to 2 decimals. For example, $51.35.
Homework Answers
Selling price of Aug 20 contract =$910
Purchase price of Aug 20 contract =$894.6
Profit/(Loss)= Selling price - Purchase price - Broker Fee
= $910-$894.6-$20 i.e.($4.60)
Loss on transaction of $4.60
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