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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Definitions:

PDR

Stands for the Physicians' Desk Reference, a comprehensive drug and prescription reference manual.

Antiplatelets

Medications that prevent blood cells called platelets from clumping together to form a blood clot, reducing the risk of heart attacks and strokes.

Bronchodilator

Medication that makes breathing easier by relaxing the muscles in the lungs and widening the airways (bronchi).

Orphan Drug

A pharmaceutical agent developed specifically to treat a rare medical condition, the so-called "orphan" diseases.