Can you please do 25,and26 25. Which of the following items is NOT specified in

Question

Can you please do 25,and26 25. Which of the following items is NOT specified in a futures contract? a. Contract size b. Quality of the asset/commodity. c. Settlement price. d. Delivery date. e. Market price at the delivery date. 26. You purchased one silver future contract at $10 per ounce. What would be your profit (loss) at maturity if the silver spot price at that time is $8.10 per ounce? Assume the contract size is 5,000 ounces and there are no transactions costs. a. $1.90 profit b. $9,500 profit c. $1.90 loss d. $9,500 loss e. None of these is correct.

Explanation / Answer

25 e. market price at the delivery date (this is a variable factor that cannt be predicted)

26. loss = (10-8.10)*5000 = 9500 loss

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