The Graphic

What would your position be now? What will happen once you have passed the six remaining months to terminate the contract? Suppose three different cases: to) the final market price falls below 10.518 euros, for example to 10.217 euros. In this case, we shall be obliged, on the one hand, to buy cars to 10.518 euros, so we would have a loss of 301 euros on each car. On the other hand, we are obliged to sell each car to 11.119 euros, so that we will have a profit of 902 euros per unit. The net result in this case would be a profit of 601 euros. (B) the final price of the market is situated between 10.518 and 11.119 euros, for example 10.818 euros. In this case, we are obliged to buy the cars at a unitary price of 10.518 euros, so that we will have a payout of 301 euros per unit. On the other hand, we are obliged to sell cars at a price of 11.119 euros, so that we will also have an income of 301 euros.

In total, the net result is a benefit of 601 euros per unit. (C) the final price of the market is situated above 11.119 euros, for example 11.419 euros. In this case we are obliged, on the one hand, to buy cars at a price of 10.518 euros, a gain of 902 euros. On the other hand, we are forced to sell cars to 11.119 euros, so that we will have a loss of 301 euros. In total, the net result is a benefit of 601 euros per unit. As we have seen, no matter what the final price of the car in the market, we will have a profit of 601 euros thanks to the purchase/sale of futures. Graphically, the result of our position is the graphic 2.4.

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