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You purchased 18 August 13 futures contracts on soybeans at a price quote of 1,059′6. Each...

You purchased 18 August 13 futures contracts on soybeans at a price quote of 1,059′6. Each contract is for 5,000 bushels with the price quoted in cents and 1/8 ths of a cent per bushel. Assume the contract price is 1,069′4 when you close out your contract six weeks from now. What will be your total profit or loss on this investment?

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Answer #1

price fluctuation is (1069'4-1059'6) cents= 10'2 cents= 10.25 cents= $0.1025

So, profit= 0.1025*5000*13=$6662.5 on this investment.

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