You sold a futures contract on oats at a futures price of 233.75, and at the time of expiration, the price was 261.25. What was your profit or loss?

A) $1375.00
B) −$1375.00
C) −$27.50
D) $27.50

Question

You sold a futures contract on oats at a futures price of 233.75, and at the time of expiration, the price was 261.25. What was your profit or loss?A)  $1375.00B)  −$1375.00C)  −$27.50D)  $27.50

abiral chitrakar · Accepted Answer

Final Answer : B, Explanation :  The loss is calculated by subtracting the selling price from the buying price (261.25 - 233.75 = 27.50). Since it's a futures contract, and the standard size for oats futures is 5,000 bushels, the total loss is 27.50 * 5,000 = $1375.00. The negative sign indicates a loss.

You sold a futures contract on oats at a futures price of 233.75, and at the time of expiration, the price was 261.25. What was your profit or loss?

A) $1375.00
B) −$1375.00
C) −$27.50
D) $27.50

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