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You Go Short Oil 10 Futures Contracts on NYMEX When

Question 2

Multiple Choice

You go short oil 10 futures contracts on NYMEX when the futures price of oil is $79 a barrel and close out your position three days later at a futures price of $83 a barrel.One futures contract is for 1,000 barrels.Ignoring interest on the margin account,the futures trading has resulted in a


A) Gain of $790,000.
B) Loss of $4,000
C) Gain of $4,000
D) Loss of $40,000

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