You Would Like to Lock in the Selling Price on 50,000

Multiple Choice

You would like to lock in the selling price on 50,000 bushels of wheat, which you plan to harvest and deliver to the market in September. The September futures price quote is currently 899΄4. If you write September futures contracts on your wheat, you will be guaranteed a total price of ________ for your crop. Each contract is quoted in cents and 1/8ths of a cent per bushel with a contract size of 5,000 bushels.

A) $45,637.50
B) $541,650.00
C) $449,750.00
D) $297,700.50
E) $2,977,000.25