Answer:
$800
Explanation: pork bellies contract purchased at $0.59 per lb.
One contract = 40,000 lbs.
$0.59 x 40,000 = $23,600.
Drop in price to $0.57 per lb at the end of the day.
$0.57 x 40,000 = $22,800
Change in value of the contract during the day
Original contract - drop in price
$23,600 - $22,800. = $800
Answer:
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.
