You bought one soybean future contract at $5.13 per bushel. What would be your profit (loss) at maturity if the wheat spot price at that time were $5.26 per bushel? Assume the contract size is 5,000 bushels and there are no transactions costs.
A) $65 profit
B) $650 profit
C) $650 loss
D) $65 loss

Question

Quizplus · Accepted Answer

The profit is calculated by taking the difference between the selling price and the buying price, then multiplying by the contract size. Here, ($5.26 - $5.13) * 5,000 = $0.13 * 5,000 = $650 profit.

You Bought One Soybean Future Contract at $5