You purchased a futures contract on corn at a futures price of 350, and at the time of expiration, the price was 352. What was your profit or loss?
A) $2.00
B) −$2.00
C) $100
D) −$100

Question

Quizplus · Accepted Answer

In futures trading, prices are typically quoted per bushel, but contracts are for 5,000 bushels. Therefore, a 2-point increase in the futures price (from 350 to 352) results in a profit of $2 per bushel. Multiplying this by the 5,000 bushels in a standard contract gives a total profit of $100.

You Purchased a Futures Contract on Corn at a Futures