Commodity Practice Set

1. Mr.Mohan is a commodity trader; he made long position in gold September

contract as per world macroeconomic factors. He made entry level at 30,300
and waiting for target of 30,650.Due to heavy speculation in gold derivative
September contract, sudden downfall happens in gold by 350 points from the
entry level. Calculate the total profit/loss. (Brokerage 0.05%).

A. 35000 profit
B. 35000 loss
C. 38047.5 loss
D. 38047.5 profit

2.When the December gold futures was trading at Rs. 27,215 per 10 gm,
expecting a fall in the price, Mr. Anil sell 10 December gold futures contract
of 1 kg in September . As expected, the gold prices fall with December
futures contracts trading at Rs. 27,120. Anil decides to close the position by
ending with a profit/loss of_?

A. Profit 9,500
B. Profit 95,000
C. Loss 95,000
D. Profit 19,500

3. A trader has a open position in nickel of 2 lots. He made a long position

from the level of 687.00, due to geopolitical events the price of nickel fall
down to 675.00. How much profit/loss has incurred by the trader.

Profit 6,000

Loss 6, 00

Loss 6,000

Profit 6, 00

4. On March 1, Aluminium trades at 112per/kg in spot market. A trader who

expects of the price rise near future buys 5 tons of Aluminium (3 months
future contracts) on MCX. At September 20, the price of Aluminium went up
to 140 because of heavy demand by the industry. If the trader wants to close
his position how much profit/loss he will earn. (Initial margin 6%) (Assume a
tax deduction of 15% is to be done)

A. Profit 1, 61,500 Margins 33, 6, 00

B. Loss 190,000, Margin 33,6,00
C. Profit 1, 60,000 Margins 33,000
D. Loss 1,60,00 Margins 33,000