You Purchased Five August 13 Futures Contracts on Soybeans at a Price

Multiple Choice

You purchased five August 13 futures contracts on soybeans at a price quote of 1056′6. Each contract is for 5,000 bushels with the price quoted in cents and 1/8ths of a cent per bushel. Assume the contract price is 1061′4 when you close out your contract six weeks from now. What will be your total profit or loss on this investment?

A) $950.25
B) $1,187.50
C) $6,480.75
D) $16,200.50
E) $24,000.00