The Seller of a Pork Bellies Futures Contract at

question 38

Multiple Choice

The seller of a pork bellies futures contract at $.41 per pound noted that the closing price of pork bellies was $0.44 today.What will happen to this contract, which requires delivery of 40,000 of pork bellies at expiration?

• A)A loss of $400 is posted to the account
• B)A gain of $400 is posted to the account
• C)A loss of $1,200 is posted to the account
• D)A gain of $1,200 is posted to the account

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