Use the Following Soybean Futures Quotes

Multiple Choice

Use the following soybean futures quotes:

-You would like to lock in the selling price on 60,000 bushels of wheat,which you plan to harvest and deliver to the market in September.The September futures price quote is currently 902΄6.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 1/8 ths of a cent per bushel with a contract size of 5,000 bushels.

A) $45,637.50
B) $541,650.00
C) $11,908.75
D) $297,700.50
E) $2,977,000.25