You Have Taken a Short Position in a Futures Contract

question 35

Multiple Choice

You have taken a short position in a futures contract on corn at $2.60 per bushel. Over the next 5 days the contract settled at 2.52, 2.57, 2.62, 2.68, 2.70. Before you can reverse your position in the futures market on the fifth day you are notified to accept delivery. What will you receive on delivery and what is the net amount you receive in total?

• A) $2.60; $2.70
• B) $2.70; -$0.10
• C) $2.70; $2.60
• D) $2.60; $0.10
• E) $2.60; -$0.10

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Definitions:

Good Health

A state of complete physical, mental, and social well-being, and not merely the absence of disease or infirmity.

Social Rejection

The act of being deliberately excluded or ostracized from a social group or interaction.

Emotional Reaction

A spontaneous response involving feelings and emotions triggered by an external event or internal thought process.

Numbness

A lack of physical sensation or emotional response, often as a reaction to shock or trauma.