If you bought a futures contract for £2.60 per bushel and the contract ended at £2.70 after several days of trading of £2.52, £2.57, £2.62, £2.68, and £2.70.What would the mark to market sequence
Be?
A)-.08, .05, .05, .06, .02
B).08, -.05, -.05, -.06, -.02
C).08, .03, -.02, -.06, -.10
D)-.08, -.03, .02, .06, .10
E).10, .06, .02, -.03, -.08

Question

Quizplus · Accepted Answer

The mark to market sequence reflects the daily profit or loss on the futures contract. Starting with a purchase price of £2.60, the sequence of trading prices shows daily changes. The sequence -.08, .05, .05, .06, .02 corresponds to the daily change from the initial or previous day's settlement price, indicating losses or gains respectively.

If You Bought a Futures Contract for £2