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You Bought a Futures Contract on Corn for $3

Question 53

Multiple Choice

You bought a futures contract on corn for $3.55 per bushel and closed the contract five days later at $3.56.The daily closing prices were $3.57,$3.54,$3.53,$3.58,and $3.56.What was the mark-to-market sequence of payments per bushel from (+) and to (−) the clearing house?


A) +$.02,−.03,−.01,+.05,−.02
B) +$.01,−.03,−.01,+.05,−.02
C) +$.02,+.01,−.02,−.06,+.04
D) −$.02,+.03,+.01,−.05,+.02
E) −$.01,+.03,+.01,−.05,+.02

Correct Answer:

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