You Buy 15 Wheat Futures Contracts When the Futures Price

question 235

Multiple Choice

You buy 15 wheat futures contracts when the futures price is $2.61 per bushel (each contract is for 5,000 bushels) . The price on the maturity date is $2.21. What is your payoff?

• A) -$30,000
• B) -$2,000
• C) $0
• D) $2,000
• E) $30,000

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Definitions:

Teller

An employee of a bank or financial institution responsible for directly interacting with customers, particularly handling deposits and withdrawals.

Electronic Funds Transfer

The digital transfer of money from one bank account to another, either within a single financial institution or across multiple institutions.

Provisions

Clauses in a contract or legal document outlining specific requirements, arrangements, or stipulations.

Beneficial

Something that promotes or enhances well-being, providing a positive or advantageous effect.