Question: 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

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. Which of the following is true? (A) The investor has made a gain of $7500. (B) The investor has made a loss of $7500. (C) The investor has made a gain of $2500. (D) The investor has made a loss of $3000. (E) None of the above. Please explain your answer. Show your calculations

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