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.