On September 10, a wholesale merchant estimates that his company will require 30 MT of chana
on February 20. e current spot price of chana is INR 1,912 per quintal (100 kg), and the price of a
February chana futures contract is INR 2,011 per quintal. Each contract is for 1 MT (1,000 kg or 10 quin-
tals) of chana. Note that the futures price is always specied in terms of the unit traded. In this example,
the futures price is always stated in terms of “per quintal”. Since the contract size is 10 quintals, contract
value will be the (futures price × 10).e wholesale merchant can ...
Become an O’Reilly member and get unlimited access to this title plus top books and audiobooks from O’Reilly and nearly 200 top publishers, thousands of courses curated by job role, 150+ live events each month, and much more.