A wheat futures contract is quoted in cents per bushel with a contract unit of 5,000 bushels. If the contract is quoted at a settle price of 685, then the value of one wheat futures contract is
A) $685.
B) $3,425.
C) $34,250.
D) $68,500.

Question

Quizplus · Accepted Answer

The value of one wheat futures contract is calculated by multiplying the settle price per bushel by the number of bushels in one contract. Therefore, 685 cents per bushel * 5,000 bushels = 3,425,000 cents, which is equivalent to $34,250.

A Wheat Futures Contract Is Quoted in Cents Per Bushel