Futures contract specifications for gold and lean hogs are shown below. Use the
ID: 2768010 • Letter: F
Question
Futures contract specifications for gold and lean hogs are shown below. Use the table of futures market data dated June 27, 2015 to answer questions 1 and 2 below.
OPEN
HIGH
LOW
SETTLE
Gold – 100 troy ounces; Dollars per ounce
July 2015
1571.40
1581.00
1563.50
1577.60
Aug
1572.60
1584.60
1563.10
1578.40
Oct
1574.50
1584.30
1566.00
1580.60
Dec
1576.50
1585.90
1568.50
1582.70
Lean Hogs – 40,000 pounds; Cents per pound
July 2015
94.55
96.20
94.40
95.57
Aug
89.80
92.00
89.70
91.70
Oct
79.85
81.30
79.85
81.05
Dec
77.55
78.35
77.55
78.30
1. Suppose you are a day trader and you go long 100 contracts of the July 2015 gold at the opening price of the day. If you reverse your position at the settle, what will your total overall profit or loss be for the day?
OPEN
HIGH
LOW
SETTLE
Gold – 100 troy ounces; Dollars per ounce
July 2015
1571.40
1581.00
1563.50
1577.60
Aug
1572.60
1584.60
1563.10
1578.40
Oct
1574.50
1584.30
1566.00
1580.60
Dec
1576.50
1585.90
1568.50
1582.70
Lean Hogs – 40,000 pounds; Cents per pound
July 2015
94.55
96.20
94.40
95.57
Aug
89.80
92.00
89.70
91.70
Oct
79.85
81.30
79.85
81.05
Dec
77.55
78.35
77.55
78.30
Explanation / Answer
Profit /loss = number of contracts*ounces per contract*(settle price-open price)
=100*100*(1577.6-1571.4)
=62000.0
=62000.0
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