You Buy 20 Corn Futures Contracts When the Futures Price

question 40

Multiple Choice

You buy 20 corn futures contracts when the futures price is $3.67 per bushel (each contract is for 5,000 bushels) .If you eventually settle the contract at $3.78,what is your profit?

• A) $11,000
• B) $13,000
• C) $9,500
• D) $15,000