A hedger takes a long position in an oil futures contract on April 1 2014 to hedge an exposure on September 1 2014. The initial futures price is $60. On June 30 2014, the futures price is $61. On September 1 2014, it is $64. The contract is closed out on September 1 2014. What gain is recognised in the financial year July 1 2013 to June 30 2014? Each contract is on 1,000 barrels of oil. _ _ _ _ _ _

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The Answer of A hedger takes a long position in an oil futures contract on April 1 2014 to hedge an exposure on September 1 2014. The initial futures price is $60. On June 30 2014, the futures price is $61. On September 1 2014, it is $64. The contract is closed out on September 1 2014. What gain is recognised in the financial year July 1 2013 to June 30 2014? Each contract is on 1,000 barrels of oil. _ _ _ _ _ _

A Hedger Takes a Long Position in an Oil Futures