Mitch sold 10 futures contracts on copper at a price of $.8063 per pound. Contracts on...

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Mitch sold 10 futures contracts on copper at a price of $.8063 per pound. Contracts on...

Mitch sold 10 futures contracts on copper at a price of $.8063 per pound. Contracts on copper areset at 25,000 pounds. What is the amount of Mitch's profit or loss if the price on the maturity date is $.8104?

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Answer 1

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Answer #1

Calculation of profit or loss:

Profit or loss= -10*(0.8104-0.8063)*25000pounds= -$1025
Mitch made a loss as he sold the futures and has to honour the price.

So amount of Mitch's loss is $1025

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Answer 2

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Mitch sold 10 futures contracts on copper at a price of $.8063 per pound. Contracts on...

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Mitch sold 10 futures contracts on copper at a price of $.8063 per pound. Contracts on...

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Add Answer to: Mitch sold 10 futures contracts on copper at a price of $.8063 per pound. Contracts on...

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Mitch sold 10 futures contracts on copper at a price of $.8063 per pound. Contracts on...