You Sold One Oil Future Contract at $70 Per Barrel

Multiple Choice

You sold one oil future contract at $70 per barrel. What would be your profit (loss) at maturity if the oil spot price at that time is $73.12 per barrel? Assume the contract size is 1,000 barrels and there are no transactions costs.

A) $3.12 profit
B) $31.20 profit
C) $3.12 loss
D) $31.20 loss
E) None of the options are correct.