You Have Taken a Short Position in a Futures Contract

question 18

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. Before you can reverse your position in the futures market on the fifth day you are notified to complete delivery. What will you receive on delivery and what is the net amount you receive in total?

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

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