Today,you Purchased Two Natural Gas Futures Contracts at the Settle

question 16

Multiple Choice

Today,you purchased two natural gas futures contracts at the settle price for a May delivery.The contract size is 10,000 MMBtu with quotes in dollars per MMBtu.The day's high was 2.954,the low was 2.939,and the settle was 2.948.What was the total amount you had to pay today?

• A)$14,740
• B)$14,695
• C)$14,770
• D)$14,755
• E)$0

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Definitions:

Coal

A combustible black or brownish-black sedimentary rock made largely of carbon and hydrocarbons, used as a fossil fuel for producing energy.

Natural Gas

A fossil fuel used primarily for heating, cooking, and electricity generation, consisting mainly of methane.

Energy Resources

Various sources of usable energy, such as fossil fuels, nuclear, solar, wind, and hydroelectric power, that can be utilized to produce power.

United States

A country in North America, comprising 50 states, a federal district, five major self-governing territories, and various possessions, noted for its diverse geography and cultural wealth.