Three days ago,you entered into a futures contract to sell €62,500 at $1.50 per €.Over the past three days the contract has settled at $1.50,$1.52,and $1.54.How much have you made or lost?
A)Lost $0.04 per € or $2,500
B)Made $0.04 per € or $2,500
C)Lost $0.06 per € or $3,750
D)none of the options

Question

Quizplus · Accepted Answer

The futures contract was to sell €62,500 at $1.50 per €. Over the past three days, the contract has settled at $1.50, $1.52, and $1.54. So, the total amount made is (1.52-1.50)*62500+(1.54-1.52)*62500=$2,500.

Three Days Ago,you Entered into a Futures Contract to Sell