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AAFM CWM_LEVEL_2 Exam - Topic 1 Question 112 Discussion

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?
A) (-)5000
B) (+)5000
C) (+)50,000
D) (-)50,000

AAFM CWM_LEVEL_2 Exam - Topic 1 Question 112 Discussion

Actual exam question for AAFM's CWM_LEVEL_2 exam
Question #: 112
Topic #: 1
[All CWM_LEVEL_2 Questions]

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?

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Suggested Answer: A

by Santos at Mar 05, 2026, 03:49 PM

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Jodi
9 days ago
I feel confused. Can someone explain the math?
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Leonora
14 days ago
No way, it's C) (+)50,000. Big profit on futures!
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Muriel
19 days ago
I disagree, it's A) (-)5000. Selling at a lower price.
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Nidia
24 days ago
I think it's B) (+)5000. Simple calculation.
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Twana
29 days ago
No way, it's D) (-)50,000. Futures can be tricky.
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Ashlyn
1 month ago
I see it as C) (+)50,000. The price increase is significant!
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Ettie
1 month ago
I disagree, it's A) (-)5000. He sold too early.
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Marsha
1 month ago
I think it's B) (+)5000. Simple calculation.
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Mariko
2 months ago
I agree with Jannette. It's straightforward math!
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Kendra
2 months ago
No, it's definitely A) (-)5000. Selling high, buying low.
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Charlene
2 months ago
I feel confused. Why not C) (+)50,000?
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Jannette
2 months ago
I think it's B) (+)5000. Simple calculation.
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Kelvin
2 months ago
Nah, it's just 5000, not 50,000.
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Willis
3 months ago
I thought it was 10 MT, so that's 50,000 profit, right?
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Luisa
4 months ago
Wait, are we sure about those numbers? Seems off.
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Fatima
4 months ago
Definitely +5000 profit, easy math.
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Iola
4 months ago
Sold at 2500, now it's 2550. That's a profit!
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Veronika
5 months ago
Yup, definitely a loss of 5000.
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Phuong
5 months ago
Seems off, double-check those numbers!
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Talia
5 months ago
Wait, how is that a loss? I thought selling high was good!
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Wynell
5 months ago
Totally agree, that's a loss of 5000.
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Ilona
5 months ago
Sold at Rs.2500, bought back at Rs.2550. That's a loss!
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Benton
5 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.
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Berry
6 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.
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Paul
6 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.
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Peggie
6 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.
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