You Purchased One Silver Future Contract at $2 Per Ounce

Multiple Choice

You purchased one silver future contract at $2 per ounce. What would be your profit (loss) at maturity if the silver spot price at that time is $3.50 per ounce? Assume the contract size is 5,000 ounces and there are no transactions costs.

A) $5,500 profit
B) $7,500 profit
C) $7,500 loss
D) $5,500 loss