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Silver futures contracts are based on 5,000 troy ounces and are priced in dollars per troy...

Silver futures contracts are based on 5,000 troy ounces and are priced in dollars per troy ounce. Suppose a closing report displays these prices for a December contract: Open 17.435, High 17.450, Low 17.025, and Settle 17.119. What is the closing value for two December futures contracts on silver? Multiple Choice $172,770 $171,190 $174,500 $170,250 $174,350

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Answer #1

Calculate the closing value as follows:

Closing value = 2 futures * No. of contracts * Settle price

Closing value = 2 * 5,000 * $17.119

Closing value = $171,190

Therefore, the closing value is $171,190.

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