You Have Taken a Short Position in a Futures Contract

question 38

Multiple Choice

You have taken a short position in a futures contract on corn at $2.60 per bushel. Over the next 5 days the contract settled at 2.52, 2.57, 2.62, 2.68, 2.70. You then decide to reverse your position in the futures market on the fifth day at close. What is the net amount you receive at the end of 5 days?

• A) $2.70
• B) $2.60
• C) $2.80
• D) $0.00

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Definitions:

CT Scan

A diagnostic medical imaging technique that uses a combination of X-rays and computer technology to produce cross-sectional images of the body's internal structures.

Homeostasis

The biological process through which living organisms regulate their internal environment to maintain a stable, constant condition.

Equilibrium

A state of balance or stability within a system, achieved when all forces or influences are equal and opposing, leading to no net change.

Biological Conditions

Refer to physical or physiological states that affect the living organisms' bodily functions.