An investor sells a futures contract on an asset when the futures price is $2500. Each contract is on 100 units of the asset. The contract is closed out when the futures price is $2560. Which of the following is TRUE? Select one alternative The investor has made a gain of $4000. The investor has made a gain of $6000. The investor has made a loss of $6000. The investor has made a loss of $4000.

Suppose a buyer of a futures contract bought the futures contract at $13 per unit. Which of the following settlement price will allow the buyer of this contract to have a gain of $4 per contract?Group of answer choices$4.$9.$13.$17.

Three days ago, you entered into a futures contract to sell €62,500 at $1.50 per €. Over the past three days the contract has settled at $1.50, $1.52, and $1.54. How much have you made or lost?Group of answer choicesLost $0.04 per € or $2,500Lost $0.06 per € or $3,750Made $0.04 per € or $2,500none of the options

A company enters into a short futures contract to sell 50,000 units of a commodity for 70 cents per unit. The initial margin is $4000 and the maintenance margin is $2000. What futures price will allow $2000 to be withdrawn from the margin account?? 78 cents 66 cents 74 cents 58 cents

Profit or Loss from a futures risk management strategy:I. Is the difference between the current price of the futures contract and its future price;II. Is used to offset the profit or loss of the previous market transaction;III. Is highly undesirable because does not allow to hedge the spot price of an underlying asset.Question 3Select one:a.Only II is correctb.All of the options are correctc.Only III is correctd.Only I is correcte.Only I and II are correct

Which of the following best describes the risks associated with futures contracts?Question 10Select one:a.The variability of changing prices and costs associated with buying and selling futures contractsb.The possibility of making an unexpected profit on a futures contractc.The probability of making a loss, or a fall in the value of a futures contractd.The possibility of loss associated with the default by the holder of the opposite position in the contract