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.

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.

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

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