Finance Quiz
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DERIVATIVES AND RISK MANAGEMENT
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A trader buys a single futures contract at a price of 100. The contract has a multiplier of $250. The position is held for three days. The settlement prices at the end of Day 1, Day 2, and Day 3 (at maturity) are 102, 99, and 101, respectively. Ignoring margin accounts and the time value of money, what is the trader's total profit or loss over the three-day period?
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