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3 February, 11:05

You purchased a futures contract on oats at a futures price of 233.75 (There are 5,000 bushels per contract and prices are quoted in cents per bushel), and at the time of expiration, the price was 261.25. What was your profit or loss

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  1. 3 February, 11:21
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    profit = 137500

    Explanation:

    given data

    futures price = 233.75

    expiration price = 261.25

    Bushels per contract = 5,000

    solution

    we get here profit that is express as

    profit = (expiration price - futures price) * Bushels per contract

    Profit = (261.25 - 233.75) * 5000

    profit = 27.5 * 5000

    profit = 137500
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