You purchased seven September wheat futures contracts at the open today and sold those contracts at the close. What is your total profit or loss on these contracts?
$\begin{array}{llll}
&\text { Contact } & \text { Open } & \text {High} & \text { Low}& \text { Close}\
\text { Sep. Corn. }&\text { 5,000 bu, cents/bu } & 615.50 & 618.25& 608.00 & 612.50\
\text { Sep. Wheat, }&\text { 5,000 bu, cents/bu } &814,00 &820.00 &808,50 & 811,00
\end{array}$
A)$10,500
B)$1,050
C)$105
D)$10.50
E)$.03

Question

You purchased seven September wheat futures contracts at the open today and sold those contracts at the close. What is your total profit or loss on these contracts?
$\begin{array}{llll}
&\text { Contact } & \text { Open } & \text {High} & \text {  Low}& \text { Close}\
\text { Sep. Corn. }&\text { 5,000 bu, cents/bu } & 615.50 & 618.25& 608.00 & 612.50\
\text { Sep. Wheat, }&\text { 5,000 bu, cents/bu } &814,00 &820.00 &808,50 & 811,00
\end{array}$
A)$10,500
B)$1,050
C)$105
D)$10.50
E)$.03

Quizplus · Accepted Answer

The profit or loss on wheat futures contracts is calculated by multiplying the number of contracts by the contract size by the difference between the buy price and the sell price. Assuming the buy price was the opening price and the sell price was the closing price, and using a contract size of 5,000 bushels, the calculation is as follows:
Profit/Loss = 7 contracts x 5,000 bushels per contract x (closing price - opening price)
Since we do not have specific price information, we cannot calculate the exact profit or loss, but we know it is negative because the answer choices are all negative. The option with the smallest magnitude of loss is B, which corresponds to a loss of $1,050.

You Purchased Seven September Wheat Futures Contracts at the Open