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11 November, 06:52

You purchased one July futures contract of pork bellies at $.59 per lb. One contract represents 40,000 lbs. of pork bellies. By the end of the day, the price had fallen to $.57 per lb. How much did the value of your contract change during the day?

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  1. 11 November, 07:06
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    the change is a decline in value by $800

    Explanation:

    The Change in the value of the contract during the day is the difference between the price of purchase and the price at the end of the day grossed as a product by multiplying with the units purchased per contract.

    Value of change

    = ($.57 - $.59) * 40,000

    = - $.02 * 40,000

    = - $800

    There was a drop of $800.
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