Contract size-5000 bushelseric wants to buy september, Ask an Expert

Economics

Contract size-5,000 bushels

Eric wants to buy September soybean futures because he believes that soybean prices are going to rise. He enters an order to buy one contract at $8.7725/bushel. The brokerage firm is going to charge Eric $35 commission to trade the contract. Assume in two months, September soybean futures are trading at $8.8175/bushel. What is Eric’s net profit/loss situation in two months assuming he did make the trade?

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91711395

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