Estimated Profit/Loss

• Projected gain/loss on the endorsement based on end of day CME prices. .
• In the event no indemnity is paid out, the maximum loss the producer will see here is the premium price for the endorsement.
• In the event an indemnity is paid out, the maximum gain the producer will receive is the indemnity less the premium.

Example

Estimated Indemnity: $50,000
Endorsement Premium Cost: $15,000
Estimated P/L:  $35,000 = ($50,000 - $15,000)