Suppose You Sold Three September Cocoa Futures Contracts at a Price

question 3

Multiple Choice

Suppose you sold three September cocoa futures contracts at a price quote of 1,696. Cocoa futures contracts are based on 10 metric tons and priced in dollars per ton. What will be your profit or loss on this contract if the price turns out to be $1,707 per metric ton at expiration?

• A) $330
• B) −$330
• C) $110
• D) −$110
• E) $150

---

Definitions:

Release

The act of making something available to the public, or allowing a substance, energy, etc., to emerge.

Ball

A spherical object; in mathematics, the set of all points in space at or below a certain distance from a given point.

Rectangle

A four-sided shape that has four 90-degree angles, with its opposing sides being parallel and of the same length.

Perimeter

The total length around the boundary of a two-dimensional shape.