Question: Explain these statement: A long futures position gains when the settlement price by the trading day end increases, while the short futures positions gains when

Explain these statement:

A long futures position gains when the settlement price by the trading day end

increases, while the short futures positions gains when the settlement price by the

trading day end decreases.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Q:

please explain in EXCEL with formulas You took a long position in 10 Eurodilar futures contracts (June 2023 delivery) on 1/13/2021 at the price indicated below. You met all margin calls, and did not...

Q:

please explain A and B in EXCEL with formulas. A and B is 1 question, You took a long position in 10 Eurodilar futures contracts (June 2023 delivery) on 1/13/2021 at the price indicated below. You...

Q:

Q1 (Futures Margin call) You took a long position in 10 Eurodllar futures contracts (June 2014 delivery) on 1/13/2012 at the price indicated below. You met all margin calls, and did not withdraw any...

Q:

(Futures Margin call) You took a long position in 10 Eurodllar futures contracts (June 2014 delivery) on 1/13/2012 at the price indicated below. You met all margin calls, and did not withdraw any...

Q:

Q1 (Futures Margin call) You took a long position in 10 Eurodllar futures contracts (June 2014 delivery) on 1/13/2012 at the price indicated below. You met all margin calls, and did not withdraw any...

Q:

1. Explain why MGRM wanted to offer a price guarantee on purchase contracts for its customers? 2. Describe the position that MGRM had. Why did it want to hedge its position? 3. Describe the basic...

Q:

The Collapse of Barings Bank Nikkei Stock Average Futures Trading on SIMEX At lunchtime on Friday, February 24, Nick Leeson faxed his resignation to his immediate supervisors James Bax and Simon...

Q:

All questions are numbered, I filled in some answers, however, its still incomplete, Professor wants more detail and structure. This is exactly how my final will look like, preferably, if possible to...

Q:

Financial Engineering ASSIGNMENT A QI. A swap bank has to entail certain risks which are inherent to the swap business and are interrelated Explain the risks involves in swap business. Q2. Call...

Q:

Looking for assistance in Finance HW..... I ONLY Need the FORMULASin the function ribbon (for the answers that I already have, which are attached below) Please advise if you can assist and provide...

Q:

1. Assuming Maria does not really care about her parents' approval and ignores their assignment, will she be able to receive a credit card without their help? Would your answer change if Maria was a...

Q:

A canvas tent has a single, tiny hole in its side. On the opposite wall of the tent, 2.0 m away, you observe a dot (due to sunlight incident upon the hole) of width 2.0 mm, with a faint ring around...

Q:

A Blank _ _ _ _ _ _ cost of capital means that Blank _ _ _ _ _ _ capital projects will have a positive net present value to the multinational firm. Multiple select question.

Q:

Add "Viggo Mortenslet cast = new Map ( ) ;en " to the cast as the key, with value "Aragorn".