Derivatives- Futures Contracts : CFAI EOC Reading 48 Question 3 F and G Hello, If the price of the future contract at start is $91.26. If am I long the contract and the price goes to $89.50 Why do I have a gain of $1.76? Why is it not a loss? Thank you very much for your help guys.
If you’re long, then you have to buy at $91.26 (from the futures contract) and sell at $89.50 (in the spot market): you lose $1.76.
Who said that you’d gain?
The CFA books. That’s in the correction. Can I take a picture of the correction and post it here?
Please do.
Their answer agrees with what I wrote above, and I don’t see anything in the errata.