Assume You Have Just Purchased a Corn Futures Contract for 5,000

question 6

Multiple Choice

Assume you have just purchased a corn futures contract for 5,000 bushels at $3.24 per bushel. What will your percentage profit on the cash investment be if the price of corn rises $.10 per bushel in 4 months? Your initial margin requirement was $1,500.

• A)3.1%
• B)33%
• C)9.2%
• D)None of the above

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Definitions:

Uncertain Situations

Refers to scenarios where the outcome or future events are not predictable or known in advance.

Familiar Meanings

Commonly understood interpretations or connotations associated with words, phrases, signs, or symbols in a shared cultural or community context.

Bless

To confer or invoke divine care or protection.

Tuition Increase

The act of raising the cost of attendance, specifically the fees for instruction, at educational institutions such as colleges or universities.