Suppose a trader is interested in longing in the futures market. In Day 0, the date...
Suppose a trader is interested in longing in the futures market. In Day 0, the date the trader enters the market, the futures price was $100. What could be the maximum amount of loss the trader per contract?
Homework Answers
Maximum amount of loss per contract will be when the price of underlying falls to zero.
Therefore, Maximum amount of loss per contract = buying price - settlement price = 100-0 = $100
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Please show how to get this
answer
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Please show how to get this
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