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23 February, 13:27

Gold futures contracts are based on 100 troy ounces and are priced in dollars per troy ounce. At the end of trading today, you saw a market report on the November contracts with these prices: Open 1293.00, High 1295.00, Low 286.00, and Settle1296.10. If you own two of these contracts, what is the value of your position as of the end of the trading day?

A. $129,610

B. $259,000

C. $258,600

D. $259,220

E. $260,4607.

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Answers (1)
  1. 23 February, 14:06
    0
    D. $259,220

    Explanation:

    The computation of the value for your position at the end of the trading day is shown below;

    Given that

    Settled price = $1296.10

    And, the

    Two contracts are

    = 2 * 100

    = 200 troy ounces

    Now the position at the end of the day is

    = Two contracts * settled price

    = $200 * 1296.10

    = $259,220

    We simply multiplied the two contracts with the settled price so that the value could arrive

    hence. the correct option is d.
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