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You Purchased One Silver Future Contract at $3 Per Ounce

Question 38

Multiple Choice

You purchased one silver future contract at $3 per ounce. What would be your profit (loss) at maturity if the silver spot price at that time is $4.10 per ounce? Assume the contract size is 5,000 ounces and there are no transactions costs.


A) $5.50 profit
B) $5,500 profit
C) $5.50 loss
D) $5,500 loss

Correct Answer:

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