Problem

25. An investor enters into 10 short futures contract on the Dow Jones Index at a futures...

25. An investor enters into 10 short futures contract on the Dow Jones Index at a futures price of 10,106. Each contract is for 10× the index. The investor closes out five contracts when the futures price is 10,201, and the remaining five when it is 10,074. Ignoring interest on the margin account, what are the investor's net profits or losses?

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Solutions For Problems in Chapter 2