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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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Luisa
1 month ago
Wait, are we sure about those numbers? Seems off.
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Fatima
1 month ago
Definitely +5000 profit, easy math.
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Iola
1 month ago
Sold at 2500, now it's 2550. That's a profit!
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Veronika
2 months ago
Yup, definitely a loss of 5000.
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Phuong
2 months ago
Seems off, double-check those numbers!
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Talia
2 months ago
Wait, how is that a loss? I thought selling high was good!
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Wynell
2 months ago
Totally agree, that's a loss of 5000.
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Ilona
2 months ago
Sold at Rs.2500, bought back at Rs.2550. That's a loss!
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Benton
2 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
3 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
3 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
3 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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