You speculate in the market by selling 10 gold futures contracts when the futures price is $524.30 per ounce. The price on the contract maturity date is $521.70. What is your total profit (loss) if the contract size is 100 ounces?

Question

Quizplus · Accepted Answer

The profit from selling futures contracts is calculated by taking the difference between the selling price and the buying price, then multiplying by the contract size and the number of contracts. Here, the selling price is $524.30, the buying price is $521.70, the contract size is 100 ounces, and there are 10 contracts. The profit per ounce is $524.30 - $521.70 = $2.60. For 100 ounces (1 contract), the profit is $2.60 * 100 = $260. For 10 contracts, the total profit is $260 * 10 = $2,600.

You Speculate in the Market by Selling 10 Gold Futures