Assume you buy 12 frozen orange juice futures contracts at t…

Assume you buy 12 frozen orange juice futures contracts at today’s settle price of $1.20 per pound. Each contract represents 10,000 pounds of juice.a. How much total exposure do your 12 contracts represent?b. If tomorrow’s settle price falls by 3 cents per pound, what is your total gain or loss?

Assume you buy 12 frozen orange juice futures contracts at t…

Assume you buy 12 frozen orange juice futures contracts at today’s settle price of $1.20 per pound. Each contract represents 10,000 pounds of juice.a. How much total exposure do your 12 contracts represent?b. If tomorrow’s settle price falls by 3 cents per pound, what is your total gain or loss?