You Sold One Soybean Future Contract at $5

question 5

Multiple Choice

You sold one soybean future contract at $5.13 per bushel. What would be your profit (loss) at maturity if the wheat spot price at that time were $5.26 per bushel? Assume the contract size is 5,000 bushels and there are no transactions costs.

• A) $65 profit
• B) $650 profit
• C) $650 loss
• D) $65 loss

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Definitions:

Executor

A person named in a will or appointed by a court to administer the estate of a deceased person.

Liquidated

The process of converting assets into cash, often referring to the disbanding of a company and selling off its assets.

Reimbursed

The process of compensating someone for an expense they have incurred.

Patent Infringement

The act of using or selling a patented invention without permission from the patent holder, violating the patent's exclusive rights.