Mitch Sold 10 Futures Contracts on Copper at a Price

question 18

Multiple Choice

Mitch sold 10 futures contracts on copper at a price of $.8063 per pound. Contracts on copper are set at 25,000 pounds. What is the amount of Mitch's profit or loss if the price on the maturity date is $.8104?

• A) -$1,025.00
• B) -$410.00
• C) -$102.50
• D) $102.50
• E) $1,025.00

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Definitions:

Non-Operating Activities

Business activities that are not related to the company's primary operations, such as investment income or losses from the sale of assets.

Income from Operations

The profit realized from a business's core operations, excluding income from other sources and expenses unrelated to the core operations.

Non-Operating Activities

Non-operating activities involve transactions not related to the core business operations, such as investment income or losses and extraordinary items.

Asset Disposals

The process of removing a fixed asset from the financial statements due to sale, trade, or retirement, involving the calculation of any gain or loss.