You Purchased Four April Futures Contracts on Gold When the Price

question 30

Multiple Choice

You purchased four April futures contracts on gold when the price quote was 687.7. Given today's closing prices as shown in the table, what is your current profit or loss?
Gold - 100 troy oz.:
u.S. dollars and cents per troy oz.

• A)$16,600
• B)$18,120
• C)$20,800
• D)$23,680
• E)$26,080

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Definitions:

Rents

Payments made for the use of property or land, or in economic theory, the excess returns to a factor of production over its opportunity cost.

Finite

Something that has limits or bounds; having a definite end or duration.

Profit Rate

The ratio of profits generated to the amount of capital or investment, indicative of the financial health and efficiency of an entity.

Demand And Supply

Fundamental economic concepts that describe the amount of a product or service available for sale (supply) and the desire of buyers for it (demand), influencing its price.