You purchased three September futures contracts on silver when the price quote was 10.472. Given today's prices as shown in the table, you have a total proﬁt (loss) to date of:
Silver - 5,000 troy oz.; $ per troy oz.

Question

Quizplus · Accepted Answer

We need to calculate the profit (loss) made on three September futures contracts on silver. Each contract represents 5,000 troy ounces of silver.

The purchase price of each contract = 10.472 dollars per troy ounce
Total purchase price of three contracts = 3 * 5,000 * 10.472 = $157,080

The current price of silver is $11.705 per troy ounce.
Total current value of 15,000 troy ounces of silver = 15,000 * 11.705 = $175,575

Profit (Loss) = Total current value - Total purchase price
Profit (Loss) = $175,575 - $157,080 = $18,495

Since the question asks for the total profit (loss) to date, we do not consider any transaction costs or margin requirements.

Therefore, the total profit made on the three September futures contracts on silver is $18,495 or $585 per contract. The correct answer is C.

You Purchased Three September Futures Contracts on Silver When the Price