What is the closing value on this day for one December futures contract on corn? Corn - 5,000 bu.; cents per bu.

Question

Quizplus · Accepted Answer

To find the closing value, we multiply the number of bushels (5,000) by the price per bushel (given in cents) and divide by 100 to get the price in dollars. Thus, the closing value is (5,000 x 11.25)/100 = $562.50. Since one futures contract is for 5,000 bushels, the total value of one contract is $562.50 x 5,000 = $2,812,500. Therefore, if the closing value on this day was $12,640, the price per bushel would be $12.64, and the total value of one futures contract would be $2,812,500 x $12.64 = $35,533,000.

What Is the Closing Value on This Day for One