You are short 25 gasoline futures contracts, established at an initial settle price of $1.36 per gallon,
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You are short 25 gasoline futures contracts, established at an initial settle price of $1.36 per gallon, where each contract represents 42,000 gallons. Over the subsequent four trading days, gasoline settles at $1.33, $1.37, $1.39, and $1.44, respectively. Compute the cash flows at the end of each trading day, and compute your total profit or loss at the end of the trading period.
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Related Book For
Corporate Finance
ISBN: 978-0077861759
11th edition
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford Jordan
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