If You Bought a Futures Contract for $2

question 8

Multiple Choice

If you bought a futures contract for $2.60 per bushel and the contract ended at $2.70 after several days of trading of $2.52, $2.57, $2.62, $2.68, and $2.70. What would the mark to market sequence be?

• A) -.08, .05, .05, .06, .02
• B) .08, -.05, -.05, -.06, -.02
• C) .08, .03, -.02, -.06, -.10
• D) -.08, -.03, .02, .06, .10
• E) .10

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Definitions:

Increasing Temperature

Refers to the rise in average temperatures across the Earth, often associated with global warming and climate change.

Low Pressure

A condition in the atmosphere where the air pressure is lower than the surrounding area, often leading to cloudy weather and precipitation.

Upper Air Currents

Large-scale movements of air that occur in the upper part of the atmosphere, influencing weather patterns and climate.

Air Convergence

The meeting and combining of airflow from different directions, often leading to cloud formation and precipitation.