You Purchased Four September Corn Futures Contracts at What Turned

question 26

Multiple Choice

You purchased four September corn futures contracts at what turned out to be the highest price of the day and sold those contracts at today's close. What is your total profit or loss on this investment?

• A) -$287.50
• B) -$950
• C) -$2,875
• D) $9,500
• E) $14,250

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Definitions:

Abbreviation

A shortened form of a word or phrase used primarily in writing to represent the complete form.

Credit Terms

The agreements between sellers and buyers that stipulate the payment amount and due dates of payments to be made for goods and services.

Invoice Price

The original price of goods or services listed on an invoice, before any discounts or adjustments are applied.

Periodic Inventory System

An inventory accounting system where the inventory balance is updated at specific intervals, requiring physical inventory counts.