You purchased a futures contract on oats at a futures price of 233.75 (There are 5,000 bushels per contract and prices are quoted in cents per bushel), and at the time of expiration, the price was 261.25. What was your profit or loss

profit = 137500

Explanation:

given data

futures price = 233.75

expiration price = 261.25

Bushels per contract = 5,000

solution

we get here profit that is express as

profit = (expiration price - futures price) * Bushels per contract

Profit = (261.25 - 233.75) * 5000

profit = 27.5 * 5000

profit = 137500