You are long 10 gold futures contracts, established at an initial settle price of $1,580 per ounce, where each contract represents 100 ounces. Over the subsequent four trading days, gold settles at $1,584, $1,581, $1,589, and $1,597, respectively. a. Calculate the profit or loss for each trading day. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.) b. Compute your total profit or loss at the end of the trading period. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)
You are long 10 gold futures contracts, established at an initial settle price of $1,580 per ounce, where each contract represents 100 ounces. Over the subsequent four trading days, gold settles at $1,584, $1,581, $1,589, and $1,597, respectively. a. Calculate the profit or loss for each trading day. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.) b. Compute your total profit or loss at the end of the trading period. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:You are long 10 gold futures contracts, established at an initial settle price of $1,580 per
ounce, where each contract represents 100 ounces. Over the subsequent four trading
days, gold settles at $1,584, $1,581, $1,589, and $1,597, respectively.
a. Calculate the profit or loss for each trading day. (A negative answer should be
indicated by a minus sign. Do not round intermediate calculations and round your
answers to the nearest whole number, e.g., 32.)
b. Compute your total profit or loss at the end of the trading period. (A negative answer
should be indicated by a minus sign. Do not round intermediate calculations and
round your answer to the nearest whole number, e.g., 32.)
a. Day 1
a. Day 2
a. Day 3
a. Day 4
b. Total profit/loss
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