You sold a futures contract on corn at a futures price of 331, and at the time of expiration, the price was 343. What was your profit or loss?

A) −$12.00
B) $12.00
C) −$600
D) $600

Question

You sold a futures contract on corn at a futures price of 331, and at the time of expiration, the price was 343. What was your profit or loss?A)  −$12.00B)  $12.00C)  −$600D)  $600

Karina Moreno · Accepted Answer

Final Answer : C, Explanation :  Since you sold the futures contract, you would profit if the price went down and lose if the price went up. The price went up from 331 to 343, a difference of 12. Futures contracts for commodities like corn are typically for 5,000 bushels, so the loss is 12 (the price increase) times 5,000 (the number of bushels), which equals $600. Therefore, it's a loss of $600.

You sold a futures contract on corn at a futures price of 331, and at the time of expiration, the price was 343. What was your profit or loss?

A) −$12.00
B) $12.00
C) −$600
D) $600

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