You are long 10 gold futures contracts, established at an initial settle price o

ID: 2811638 • Letter: Y

Question

You are long 10 gold futures contracts, established at an initial settle price of $1,570 per ounce, where each contract represents 100 ounces.

Over the subsequent four trading days, gold settles at $1,579, $1,575, $1,583, and $1,585, respectively.

Calculate the profit or loss for each trading day. (Do not round intermediate calculations. A negative answer should be indicated by a minus sign.)

Profit/Loss

Day 1 $....

Day 2 $.....

Day 3 $.....

Day 4 $.....

Compute your total profit or loss at the end of the trading period. (Input your answer as a positive value. Do not round intermediate calculations.)

a). Day 1 = ($1,579 - $1,570) x 100 x 10 = $9,000

Day 2 = ($1,575 - $1,579) x 100 x 10 = -$4,000

Day 3 = ($1,583 - $1,575) x 100 x 10 = $8,000

Day 4 = ($1,585 - $1,583) x 100 x 10 = $2,000

b). Total Profit = ($1,585 - $1,570) x 100 x 10 = $15,000

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