Solved

You Buy One Futures Contract for 5,000 Bushels of Soybeans

Question 88

Multiple Choice

You buy one futures contract for 5,000 bushels of soybeans with a settlement price of $6.92 per bushel. If the price is $7.58 per bushel at the contract expiration, what is your payoff?


A) -$37,900
B) -$3,300
C) $2,130
D) $3,300
E) $37,900

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q83: Interest rate swaps can benefit both the

Q84: A cereal company generally enters into a

Q85: The process of using available financial instruments

Q86: Which one of the following statements concerning

Q87: Which of the following is the best

Q89: Which of the following is the best

Q90: Long-run financial risk:<br>A) Includes conditions such as

Q91: A key difference between an option contract

Q92: Gains and losses on futures contracts are

Q93: You sell 10 gold futures contracts when