You Purchased Five August 13 Futures Contracts on Soybeans at a Price

question 30

Multiple Choice

You purchased five August 13 futures contracts on soybeans at a price quote of 1056′6. Each contract is for 5,000 bushels with the price quoted in cents and 1/8ths of a cent per bushel. Assume the contract price is 1061′4 when you close out your contract six weeks from now. What will be your total profit or loss on this investment?

• A)$950.25
• B)$1,187.50
• C)$6,480.75
• D)$16,200.50
• E)$24,000.00

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Definitions:

Communication

The act of conveying meanings from one entity or group to another through the use of mutually understood signs, symbols, and semiotic rules.

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An area defended by an animal or group of animals against others of the same species for the purposes of mating and rearing offspring.

Male Elks

Adult male specimens of the species Cervus canadensis, known for their large antlers, which they shed and regrow each year.

Waggle Dance

A remarkable behavior displayed by honeybees to communicate the location of food sources to other members of their hive.