Bellow approx. 3,5 (3,5 is the worth of the underlying. eg. a stock as well as the strike price of the future) the sample future generates a loss. You could buy the underlying cheaper (eg. for 3 Euro) at the spot market.
Short future
If you believe underlyings price will fall
Bellow the underlying value of 3,5 (3,5 is the worth of the underlying. eg. a stock as well as the strike price of the future) the sample future (short) makes a profit. As the underlying price is cheaper than the strike price one could theoretically buy the underlying for a lower price and sell it for the strike price to the holder of the long future.
