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docker41 [41]
3 years ago
6

An investor enters into a short oil futures contract when the futures price is $15.5 per barrel. The contract size of 100 barrel

s of oil. How much does the investor gain or lose if the oil price at the end of the contract equals $14.0
Business
1 answer:
Nikolay [14]3 years ago
3 0

Answer:

$150

Explanation:

Calculation to determine How much does the investor gain or lose if the oil price at the end of the contract equals $14.0

Using this formula

Gain or Loss =(Futures price- Ending contract)*Contract size

Let plug in the formula

Gain or Loss=$15.5 per barrel- $14.0* 100 barrels

Gain or Loss=$1.5*100

Gain or Loss=$150

Therefore How much does the investor gain or lose if the oil price at the end of the contract equals $14.0 will be $150

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