A Gasoline Distributor Buys a Gasoline Futures Contract That Requires

question 106

Multiple Choice

A gasoline distributor buys a gasoline futures contract that requires acceptance of 42,000 gallons of gasoline at $0.94 per gallon.How is the account marked to market if gasoline futures close the next day at $0.97?

• A) A loss of $1,260 is posted to the account.
• B) A gain of $1,260 is posted to the account.
• C) A loss of $12,600 is posted to the account.
• D) A gain of $12,600 is posted to the account.

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Definitions:

Revenue

The total income generated from the sale of goods or services related to a company's primary operations.

Damaged Goods

Items that are broken, defective, or otherwise impaired, reducing their usefulness or value.

High-value Users

Individuals or entities that contribute significantly to a company's revenue, often through consistent purchases or use of high-tier services.

Metering Strategy

Approaches used by companies to measure and charge for services based on usage or consumption.