Gold futures contracts are based on 100 troy ounces and are priced in dollars per troy ounce. At the end of trading today, you saw a market report on the November contracts with these prices: Open 1293.00, High 1295.00, Low 286.00, and Settle1296.10. If you own two of these contracts, what is the value of your position as of the end of the trading day?

A. $129,610

B. $259,000

C. $258,600

D. $259,220

E. $260,4607.

Question

Aubrey Berg

Business

29 October, 12:24

Gold futures contracts are based on 100 troy ounces and are priced in dollars per troy ounce. At the end of trading today, you saw a market report on the November contracts with these prices: Open 1293.00, High 1295.00, Low 286.00, and Settle1296.10. If you own two of these contracts, what is the value of your position as of the end of the trading day?

A. $129,610

B. $259,000

C. $258,600

D. $259,220

E. $260,4607.

+1

Answers (1)

Know the Answer?

Mariela · Answer 1

D. $259,220

Explanation:

The computation of the value for your position at the end of the trading day is shown below;

Given that

Settled price = $1296.10

And, the

Two contracts are

= 2 * 100

= 200 troy ounces

Now the position at the end of the day is

= Two contracts * settled price

= $200 * 1296.10

= $259,220

We simply multiplied the two contracts with the settled price so that the value could arrive

hence. the correct option is d.