Question

Three days ago, you entered into a futures contract to sell €62,500 at $1.50 per €. Over the past three days the contract has settled at $1.50, $1.52, and $1.54. How much have you made or lost? Multiple Choice a. Lost $0.04 per € or $2,500 b. Made $0.04 per € or $2,500 c. Lost $0.06 per € or $3,750

Answer 1

Answer:

Option A is correct one.

Lost $0.04 per € or $2,500

Explanation:

Since we are selling the futures contract. Hence we  will suffer loss i.e when the price is rising.

Hence total loss=(1.50-1.54)*62500= $2500