Kayla is a speculator in the market for a rare French goat cheese known as Crottin de Chavignol. She entered into a futures
contract with farmers from the small town of Chavignol, where the cheese is produced. The futures contract specifies that after
45 months, Kayla will purchase 3500 kilograms (kg) of Crottin de Chavignol at $230/kg. When the specified number of months
has passed, the price of Crottin de Chavignol is $170/kg. What is Kayla's profit per kilogram? Please denote losses with a
negative sign.
Profit per kilogram = $
Which of the statements is NOT true about futures
contracts?
O Futures markets can help to reduce investor risk.
O Few people have the space or resources to purchase
commodity futures.
O Many futures contracts are settled in cash that do not
require actual delivery of the commodity.
The futures markets are used as a prime tool
for speculators.