Homework Answers
Suzy has to sell the gold, hence she has shorted the futures contract.
Price received per ounce = spot price on January 17th + profit or loss on futures contract
profit or loss on futures contract = futures price on January 3rd - futures price on January 17th
We use the futures prices for the March contract since she took a short position on the March contract.
profit or loss on futures contract = $1555.30 - $1563.60 = -$8.30
Price received per ounce = spot price on January 17th + profit or loss on futures contract
Price received per ounce = $1556.35 + (-$8.30)
Price received per ounce = $1548.05
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