Answer: The answers are provided below
Step-by-step explanation:
a. What was your position?
My position will be the difference between the past future price when I sold the good and the current future price which is then multiplied by the contract size. This will be:
= ($1,350 - $1,340) × 100
= $10 × 100
My position = $1,000
b. What was the buyer’s position?
The buyer's position will be the opposite of mine. This will be:
= ($1,340 - $1,350) × 100
= -$10 × 100
= -$1000
Buyer's position = -$1,000
c. Calculate your loss/gain on the contract.
The profit will be the difference between the selling price and the closing price multiplied by the contract size. This will be:
= ($1,350 - $1,340) × 100
= $10 × 100
= $1,000
My profit = $1,000