Calculate the Profit or Loss Associated with a Long Position

question 51

Essay

Calculate the profit or loss associated with a long position in ten SPI futures contracts entered at 4931 and closed out at 4885.Recalculate if the closeout transaction was at 5000.

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Definitions:

British Pounds

The currency of the United Kingdom, symbolized by £, and one of the major currencies traded worldwide.

Fixed Exchange Rates

An exchange rate regime where a country's currency value is tied to another currency, a basket of currencies, or another measure of value, such as gold, and does not fluctuate in the foreign exchange market.

Balance of Trade

The difference in value between a country's exports and imports over a certain period.

Goods and Services

Physical items that can be purchased (goods) and intangible assistance or activities provided for consumption (services).