You Have Taken a Short Position in a Futures Contract

question 52

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,and 2.70. You then decide to reverse your position in the futures market on the fifth day at close. What is the net amount you receive at the end of 5 days?

• A) $0.00
• B) $2.60
• C) $2.70
• D) $2.80
• E) Must know the number of contracts

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Definitions:

Gametes

Reproductive cells (such as sperm and egg) with half the usual number of chromosomes, capable of fusing with another to form a new organism.

Placenta

A conduit between the mother and fetus, providing nourishment and oxygen via the umbilical cord.

Amniotic Sac

A fluid-filled sac that surrounds and protects the fetus in the womb, providing a safe environment for the fetus to grow and develop.

Ectoderm

The outermost layer of cells in the early embryo, which develops into the nervous system, skin, and hair.