A Soybean Oil Contract Calls for Delivery of 60,000 Pounds

question 17

Multiple Choice

A soybean oil contract calls for delivery of 60,000 pounds.What happens to the seller of a soybean futures contract at 16 cents per pound if the futures price closes the next day at 14 cents per pound?

• A) The contract is marked to market with a $1,200 loss.
• B) The contract is marked to market with a $1,200 gain.
• C) Futures contracts are voided if price increases before expiration.
• D) Nothing happens until the expiration of the contract.

---

Definitions:

Proofs of Purchase

Documents or items that serve as evidence that a product has been bought, such as receipts, barcodes, or warranty cards.

Ball Toy

A simple toy consisting of a spherical object designed for play in a variety of games and activities.

Premium

An additional charge for a higher level of service or quality, or the amount paid for insurance coverage.

Free Purple Seat Cushion

A promotional item or gift, specifically a seat cushion produced by the company Purple, offered at no cost to customers as part of a marketing strategy.