You Go Short Oil 10 Futures Contracts on NYMEX When

Multiple Choice

You go short oil 10 futures contracts on NYMEX when the futures price of oil is $79 a barrel and close out your position three days later at a futures price of $83 a barrel. One futures contract is for 1,000 barrels. Ignoring interest on the margin account, the futures trading has resulted in a

A) Gain of $790,000.
B) Loss of $4,000
C) Gain of $4,000
D) Loss of $40,000