You Purchased Four August 09 Futures Contracts on Soybeans at a Price

question 78

Multiple Choice

You purchased four August 09 futures contracts on soybeans at a price quote of 1156'6. Each contract is for 5,000 bushels with the price quoted in cents and 1/8 ths of a cent per bushel. Assume the contract price is 116'4 when you close out your contract six weeks from now. What will be your total profit or loss on this investment?

• A) $950
• B) -$238
• C) $6,480
• D) $16,200
• E) $24,000

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Definitions:

Systems Theory

Systems theory is a conceptual framework that examines complex systems by understanding components and interactions within the whole structure, widely applied in disciplines like psychology, sociology, and ecology to explain dynamic behaviors.

Subsystems

Smaller systems or components within a larger system, each with its own roles and functions, important in understanding complex entities.

Feedback Loop

A system where the output of a process is fed back into the system as input, leading to either a self-regulating process or amplification of the process.

Systems Theory

An interdisciplinary study of systems in general, with the goal of elucidating principles that can be applied to all types of systems at all nested levels in all fields of research.