Assume you have just purchased a corn futures contract for 5,000 bushels at $3.24 per bushel. What will your percentage profit on the cash investment be if the price of corn rises $.10 per bushel in 4 months? Your initial margin requirement was $1,500.

Question

Quizplus · Accepted Answer

The profit from the price increase is $0.10 per bushel for 5,000 bushels, totaling $500. The percentage profit is calculated by dividing the profit by the initial investment and multiplying by 100. Thus, $500 / $1,500 * 100 = 33%.

Assume You Have Just Purchased a Corn Futures Contract for 5,000