Futures contracts on palladium are based on 50 troy ounces and are priced in dollars per troy ounce. Assume today's open price on one May contract was 758.90 and the settle price was 756.10. You own three May contracts which you purchased at a quote of 749.30. What is your total profit or loss to date?
A) $1,020
B) −$1,545
C) −$420
D) −$1,020
E) $1,545

Question

Quizplus · Accepted Answer

The profit or loss is calculated as: (Settle Price - Purchase Price) * Contract Size * Number of Contracts = (756.10 - 749.30) * 50 * 3 = $1,020.

Futures Contracts on Palladium Are Based on 50 Troy Ounces