A trader sells a futures contract on a certain commodity when the futures price is at $1, 390. Each futures contract is on 250 units of the commodity. The contract is closed out when the futures price is $1420.

The investor has made a gain of $7500. 

The investor has made a loss of $7500. 

The investor has made a gain of $2500. 

The investor has made a loss of $3000. 

Explain your answer.

Answer rating: 100% (QA)

Lets calculate the gain or loss for each scenario 1 The investor has made a gain of 7500 Gain Closin... View the full answer