You purchased one wheat future contract at $5.04 per bushel. What would be your profit (loss) at maturity if the wheat spot price at that time were $4.98 per bushel? Assume the contract size is 5,000 bushels and there are no transactions costs.

Question

Quizplus · Accepted Answer

The loss is calculated by taking the difference between the purchase price and the spot price at maturity, then multiplying by the contract size. Here, ($5.04 - $4.98) * 5,000 = $0.06 * 5,000 = $300 loss.

You Purchased One Wheat Future Contract at $5