You Purchased a Futures Contract on Oats at a Futures

question 39

Multiple Choice

You purchased a futures contract on oats at a futures price of 233.75, and at the time of expiration, the price was 261.25. What was your profit or loss?

• A) $1375.00
• B) −$1375.00
• C) −$27.50
• D) $27.50

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Definitions:

Price

The amount of money required to purchase a good, service, or asset.

Green Ink Pads

Small, flat surfaces soaked with green ink used for stamping or printing purposes.

Marginal Revenue

The supplementary earnings received from the sale of one extra unit of a good or service.

Monopoly Power

Monopoly power refers to the ability of a company or entity to control the supply of a good or service, and to significantly influence the terms and price under which it is sold.