A Futures Contract Seller Is Obligated to Deliver 5,000 Bushels

question 64

Multiple Choice

A futures contract seller is obligated to deliver 5,000 bushels of soybeans for $5.00 per bushel at expiration.If soybean futures close at $5.10 the next day,the seller:

• A) has a profit of $500 thus far on the contract.
• B) has a loss of $500 thus far on the contract.
• C) has no profit or loss, but is still obligated to deliver 5,000 bushels at $5.00.
• D) will receive a check for $500 from the buyer of the contract.

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