Mitch sold 10 futures contracts on copper at a price of $.8063 per pound. Contracts on copper are set at 25,000 pounds. What is the amount of Mitch's profit or loss if the price on the maturity date is $.8104?
A) -$1,025.00
B) -$410.00
C) -$102.50
D) $102.50
E) $1,025.00

Question

Quizplus · Accepted Answer

Mitch sold at $.8063 and bought at $.8104, resulting in a loss of $.0041 per pound. For 10 contracts of 25,000 pounds each, the total loss is 10 * 25,000 * $.0041 = $1,025.00.

Mitch Sold 10 Futures Contracts on Copper at a Price