You sold one July futures contract of pork bellies at $.59 per lb. One contract represents 40,000 lbs. of pork bellies. By the end of the day, the price had fallen to $.57 per lb. What was your profit or loss for the day?

Question

Quizplus · Accepted Answer

The profit is calculated by the difference in price ($.59 - $.57 = $.02 per lb.) multiplied by the contract size (40,000 lbs.), resulting in a profit of $800.

You Sold One July Futures Contract of Pork Bellies at $.59