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8. As of today, what is the value of the Dow Jones Industrials (DJIA Mini) September...

8. As of today, what is the value of the Dow Jones Industrials (DJIA Mini) September 2020 futures? How many of these futures contracts can you buy with one million USD? Assume the value of the futures at maturity is 27,000, what would happen if you keep the contracts until maturity? How much would be your gain/loss in dollars?

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Answer #1

As of today Value of Dow Jones Industrials (DJIA Mini) September 2020 futures = 26636

Lot size of  Dow Jones Industrials (DJIA Mini) September 2020 futures = 5

No of contract that can be bought with 1,000,000 $ = 1,000,000/ (5 x 26636)

= 1000,000 / 133180

= 7.51

i.e 7 contracts

If at maturity value of the futures at maturity is 27,000 , then there will be profit on the position

Profit = 5 x (27000-26636) x 7 contracts

= 12740 $

Thus theer will be profit of $ 12740

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