Compute the dollar gain or loss on each of the following future Contracts.... a)

Question

Compute the dollar gain or loss on each of the following future Contracts....

a) May 14, 2015 Purchase T Bonds Interest Rate Futures Contracts expiring June 2015. Close position in June 2015 at price of 157-060. Open price is 152-060. CMT 100,000 Settle price is 153-000

b) May 14, 2015. Sell short mini Nasdaq 100 Index Futures Contracts expiring Setempber 2015. Close positon in Setempber at price 4518.4 open is 4425.8 20 x index Settle Price is 4490.3

c) May 14. 2015. Purchase MiniRussell 2000 Index Futuress Contract expiring June 2015. Close position in June 2015 at price 1204.50. open is 1231.30 100x index Settle Price is 1242.40

Explanation / Answer

A) Gain on purchase :4060*100000=406,000,000

**Loss at the time of open price = 153000-152060=940

**Gain at the time of close price = 157060-152060=5000

net gain = 5000-940 = 4060

B)loss on sell of future= 28.10*20*100=56200

**Gain on open price= 4490.3-4425.8=64.50

Loss on close price= 4425.8-4518.4=(92.60)

net loss= 92.6-64.50 = 28.10

C)loss on purchase =37.90*100*2000=7,580,000

**loss at open position = 1242.4-1231.30 =11.10

**loss on close position = 1231.30-1204.50=26.80

Total loss = 11.10+26.80 = 37.9

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