You speculate in the market by selling 15 gold futures contracts when the futures price is $648.50 per ounce. The price on the contract maturity date is $662.60. What is your total profit or loss if the contract size is 100 ounces?

Question

Quizplus · Accepted Answer

The loss is calculated by taking the difference between the selling price and the buying price, then multiplying by the number of contracts and the contract size. Here, it's ($648.50 - $662.60) * 15 * 100 = -$21,150.

You Speculate in the Market by Selling 15 Gold Futures