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Referring to BPP SBR Study Text Chapter 8 Illustration 11, on the topic of fair value hedging
1 July 20X6
Joules sold 10,000 ounces in the futures market for $215 per ounce for delivery on 30 June 20X7.31 December 20X6
The futures price for 30 June 20X7 delivery was $198 per ounce.30 June 20X7
The trader sold the inventories and closed out the futures position at the then spot price of $190 per ounce.May I know that why it is increase in future contract asset (a gain) although the price of future keeps dropping?
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