If You Bought a Futures Contract for $2

question 8

Multiple Choice

If you bought a futures contract for $2.60 per bushel and the contract ended at $2.70 after several days of trading of $2.52, $2.57, $2.62, $2.68, and $2.70. What would the mark to market sequence be?

• A) -.08, .05, .05, .06, .02
• B) .08, -.05, -.05, -.06, -.02
• C) .08, .03, -.02, -.06, -.10
• D) -.08, -.03, .02, .06, .10
• E) .10

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Definitions:

Re-sort List

The action of organizing or rearranging items in a list according to a different criterion or sequence.

Fixed Asset

Long-term tangible property that a company owns and uses in its operations to generate income, such as buildings, machinery, and equipment.

Owner's Equity

The total value of a business owned by its owners, calculated as the business's total assets minus its total liabilities.

Business Ownership

Refers to the control over a business enterprise, determining the management and profit allocation.