Suppose That You Sold a Futures Contract for $3

Multiple Choice

Suppose that you sold a futures contract for $3.75 per bushel and the contract ended at $3.60 after several days of closing prices of $3.80, $3.70, $3.65, $3.70, $3.65, and $3.60. What would the mark to market sequence be? (Cash flow per bushel, in $.)

A) −0.05, 0.10, 0.05, −0.05, 0.05, 0.05
B) 0.05, −0.10, −0.05, 0.05, −0.05, −0.05
C) −0.05, 0.05, 0.10, 0.05, −0.09, −0.15
D) 0.05, −0.05, −0.10, −0.05, −0.09, −0.015