Use the Following Soybean Futures Quotes to Answer This Question

question 12

Multiple Choice

Use the following soybean futures quotes to answer this question.
Soybeans: 5,000 bushels, cents and 1/8ths of a cent per bushel
$\begin{array}{ccccc} \operatorname{Exp} & \text { Last } & \text { Net Chg } & \text { Open } & \text { High } & \text { Low }& \text { Settle} \\ \text { 08 Sep } & 1314^{\prime}0 & -3^{\prime} 4 & 1340^{\prime} 2 & 1340^{\prime} 6 & 1313^{\prime} 4 &1314^{\prime}0\\\text { 08 Nov } & 1285^{\prime }2 & +4{ }^{\prime}2 & 1306^{\prime}0 & 1312 ^{\prime}2&1280 ^{\prime}0&1285^{\prime}2 \\\end{array}$
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Last week, you purchased four November 08 soybean futures contracts when the price quote was 1300?6. What is your current profit or loss on this investment?

• A)-$3,100.00
• B)-$2,625.00
• C)-$31.00
• D)$987.50
• E)$3,350.00

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Definitions:

Eurobond

A bond issued in a currency other than the currency of the country or market in which it is issued.

International Bond

A debt investment that is issued in a country by a non-domestic entity, potentially denominated in a foreign currency, and sold to investors from around the world.

Purchasing Power Parity

Purchasing power parity is an economic theory that compares different countries' currencies through a "basket of goods" approach, assuming that exchange rates should adjust so that identical goods cost the same in different countries.

Exchange Rate

The price of one country's currency expressed in terms of another country's currency, facilitating international trade and finance.