Professional Documents
Culture Documents
Example
If you agree in April with your Aunt Sue that you will buy two pounds of tomatoes from her garden for $5, to be delivered to you in July, you just entered into a futures contract!
Similar to stocks, gains and losses are the result of price changes
Futures Transaction Sell futures Buy back futures Total Return 950.00 939.00 11.00 950.00 959.00 -9.00 9.00 X $100 = -$900 11.00 x $100=$1,100