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?

Question

Quizplus · Accepted Answer

Mitch sold at $.8063 and the price increased to $.8104, resulting in a loss. The loss per pound is $.8104 - $.8063 = $.0041. 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