You purchased one July futures contract of pork bellies at $.59 per lb. One contract represents 40,000 lbs. of pork bellies. By the end of the day, the price had fallen to $.57 per lb. How much did the value of your contract change during the day?

the change is a decline in value by $800

Explanation:

The Change in the value of the contract during the day is the difference between the price of purchase and the price at the end of the day grossed as a product by multiplying with the units purchased per contract.

Value of change

= ($.57 - $.59) * 40,000

= - $.02 * 40,000

= - $800

There was a drop of $800.

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