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Section B (2 Mark)
One unit of trading for Guar Seed futures is 10 MT and delivery unit is 10 MT. A trader sells 1 unit of Guar Seed at Rs.2500/Quintal on the futures market. A week later Guar Seed futures trade at Rs.2550/Quintal. How much profit/loss has he made on his position?
Suggested Answer: A
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26 comments · newest first
JO
Jodi
2 months ago
I feel confused. Can someone explain the math?
LE
Leonora
2 months ago
No way, it's C) (+)50,000. Big profit on futures!
MU
Muriel
2 months ago
I disagree, it's A) (-)5000. Selling at a lower price.
NI
Nidia
2 months ago
I think it's B) (+)5000. Simple calculation.
TW
Twana
2 months ago
No way, it's D) (-)50,000. Futures can be tricky.
AS
Ashlyn
3 months ago
I see it as C) (+)50,000. The price increase is significant!
ET
Ettie
3 months ago
I disagree, it's A) (-)5000. He sold too early.
MA
Marsha
3 months ago
I think it's B) (+)5000. Simple calculation.
MA
Mariko
3 months ago
I agree with Jannette. It's straightforward math!
KE
Kendra
3 months ago
No, it's definitely A) (-)5000. Selling high, buying low.
CH
Charlene
4 months ago
I feel confused. Why not C) (+)50,000?
JA
Jannette
4 months ago
I think it's B) (+)5000. Simple calculation.
KE
Kelvin
4 months ago
Nah, it's just 5000, not 50,000.
WI
Willis
4 months ago
I thought it was 10 MT, so that's 50,000 profit, right?
LU
Luisa
6 months ago
Wait, are we sure about those numbers? Seems off.
FA
Fatima
6 months ago
Definitely +5000 profit, easy math.
IO
Iola
6 months ago
Sold at 2500, now it's 2550. That's a profit!
VE
Veronika
6 months ago
Yup, definitely a loss of 5000.
PH
Phuong
6 months ago
Seems off, double-check those numbers!
TA
Talia
6 months ago
Wait, how is that a loss? I thought selling high was good!
WY
Wynell
7 months ago
Totally agree, that's a loss of 5000.
IL
Ilona
7 months ago
Sold at Rs.2500, bought back at Rs.2550. That's a loss!
BE
Benton
7 months ago
I feel like the answer could be B or D, but I need to double-check how to calculate the total loss based on the unit size.
BE
Berry
7 months ago
I'm a bit unsure about the exact math here, but if he sold at Rs.2500 and it went to Rs.2550, that sounds like a loss to me.
PA
Paul
7 months ago
I practiced a similar question where the price change was different, but I think the loss calculation involves the difference in price times the quantity.
PE
Peggie
7 months ago
I think I remember that selling futures means you're betting the price will go down, so if it goes up, you lose.