You purchased a futures contract on oats at a futures price of 2.33, and at the time of expiration, the price was 2.61.What was your profit or loss?

Question

Quizplus · Accepted Answer

The profit is calculated by taking the difference between the selling price and the buying price, then multiplying by the contract size. For oats, the standard contract size is 5,000 bushels. So, the calculation is (2.61 - 2.33) * 5,000 = 0.28 * 5,000 = $1,400.00 profit.

You Purchased a Futures Contract on Oats at a Futures