A Gasoline Distributor Buys a Gasoline Futures Contract to Receive

question 31

Multiple Choice

A gasoline distributor buys a gasoline futures contract to receive 42,000 gallons of gasoline at $2.94 per gallon.How is the account marked to market if gasoline futures close the next day at $2.97?

• 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.

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Definitions:

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The outer parts of the reproductive system visible on the body's exterior, varying between males and females.

Phenylalanine

An essential amino acid that is a building block of proteins and is necessary for the body's production of neurotransmitters.

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Traits or conditions that are passed from parents to their offspring through genes.

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