Gold futures contracts are based on 100 troy ounces and are priced in dollars per troy ounce. You own three November contracts. At the end of trading today, the market report reflected these prices: Open 1293.00, High 1295.00, Low 1286.00, and Settle 1296.10. What is the value of your contracts at the market close today?
A) $129,610
B) $259,000
C) $258,600
D) $388,830
E) $360,460

Question

Quizplus · Accepted Answer

The value of the contracts at market close today is calculated by multiplying the settle price (1296.10) by the number of troy ounces per contract (100) and then by the number of contracts owned (3). So, 1296.10 * 100 * 3 = $388,830.

Gold Futures Contracts Are Based on 100 Troy Ounces and Are