Answered

Welcome to Westonci.ca, your ultimate destination for finding answers to a wide range of questions from experts. Our platform provides a seamless experience for finding reliable answers from a network of experienced professionals. Join our Q&A platform to connect with experts dedicated to providing accurate answers to your questions in various fields.

An investor enters into a short oil futures contract when the futures price is $15.5 per barrel. The contract size of 100 barrels of oil. How much does the investor gain or lose if the oil price at the end of the contract equals $14.0

Sagot :

abiolataiwo2015

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

Thank you for visiting. Our goal is to provide the most accurate answers for all your informational needs. Come back soon. Thank you for your visit. We're dedicated to helping you find the information you need, whenever you need it. Find reliable answers at Westonci.ca. Visit us again for the latest updates and expert advice.