Multiple Choice
Today,you purchased a futures contract obligating you to purchase 100 troy ounces of gold for $1,218 per ounce any time over the next month.Assume the spot price of gold falls to $1,216 tomorrow.What will be your cash flow tomorrow for this contract?
A) −$400
B) $200
C) $0
D) −$200
E) $400
Correct Answer:
Verified
Correct Answer:
Verified
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