Suppose oil futures prices are as given in the above table (price per barrel) .Suppose you buy 100 crude oil futures contracts,each for 1000 barrels of crude oil,at the current futures price of $108 per barrel on day 0.What is your cumulative profit/loss in your margin account by the end of day 5?

Question

Quizplus · Accepted Answer

C) Since you are the buyer, you benefit from the price increase.
The cumulative mark-to-market gain per barrel is the futures price on day 5 - the futures price on day 0 = 109 -108 = $1 per barrel. For 100,000 barrels, the gain is $100,000

Suppose Oil Futures Prices Are as Given in the Above