You Sell One Futures Contract for 112,000 Pounds of Sugar

question 263

Multiple Choice

You sell one futures contract for 112,000 pounds of sugar with a settlement price of 20.87 cents per pound. If the price is 19.63 cents per pound at the contract expiration, what is your payoff?

• A) -$138,880
• B) -$122,420
• C) $115,378
• D) $122,420
• E) $138,880

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A company whose shares are traded freely on a stock exchange, with many shareholders and subject to public reporting regulations.

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