If you sold a futures contract for $3.75 per bushel and the contract ended at $3.60 after several days of trading of $3.80, $3.70, $3.65, $3.70, $3.65 and $3.60. What would the mark to market sequence be?
A) -0.05, 0.10, 0.05, -0.05, 0.05, 0.05
B) 0.05, -0.10, -0.05, 0.05, -0.05, -0.05
C) -0.05, 0.05, 0.10, 0.05, -0.09, -0.15
D) 0.05, -0.05, -0.10, -0.05, -0.09, -0.015

Question

Quizplus · Accepted Answer

The mark to market sequence is the difference between the futures price and the contract price. In this case, the futures price is $3.60 and the contract price is $3.75. So, the mark to market sequence is:-0.05 (3.60 - 3.75)0.10 (3.70 - 3.60)0.05 (3.65 - 3.70)-0.05 (3.60 - 3.65)0.05 (3.70 - 3.65)0.05 (3.60 - 3.65)

If You Sold a Futures Contract for $3