Marking to Market You are short 25 gasoline futures contracts, established at an initial settle price of
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Marking to Market You are short 25 gasoline futures contracts, established at an initial settle price of $1.52 per gallon, where each contract represents 42,000 gallons. Over the subsequent four trading days, gasoline settles at $1.46, $1.55, $1.59, and $1.62, respectively. Compute the cash fl ows at the end of each trading day, and compute your total profi t or loss at the end of the trading period.
LO.1
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