Last week,you sold a futures contract on 5,000 troy ounces of silver at a settle price of $16.59.Today,you made delivery and the daily settle price was $16.62.What amount will you receive at the time of delivery? Assume yesterday's settle price was $16.66.

Question

Quizplus · Accepted Answer

To calculate the profit or loss on a futures contract, we need to subtract the original sell price from the final settlement price. In this case, the profit would be:
($16.62 - $16.59) x 5,000 = $15

Therefore, the amount received at the time of delivery would be:
Original sell price - Profit = Settlement amount
$16.59 - $15 = $83,100

The fact that yesterday's settlement price was $16.66 is irrelevant to the calculation of the final settlement amount.

Last Week,you Sold a Futures Contract on 5,000 Troy Ounces