Suppose you sell nine September 2023 palladium futures contracts on this day, at the last price of the day which is $1690 per ounce. Each contract is for 100 ounces. What will your cumulative mark to market be if palladium prices are $1770 per ounce at expiration

the cumulative mark to market is -$72,000

Explanation:

The computation of the cumulative mark to market is shown below:

Mark to market is

= (selling price - ending price) × ounces per contract × number of contracts

= ($1,690 per ounces - $1,770 per ounces) × 100 punces × 9

= -$72,000

hence, the cumulative mark to market is -$72,000

We simply applied the above formula so that the correct value could come

And, the same is to be considered