A soybean oil contract calls for delivery of 60,000 pounds. What happens to the seller of a soybean futures contract at 41 cents per pound if the futures price closes the next day at 42 cents per pound?
A) The contract is marked to market with a $600 loss.
B) The contract is marked to market with a $600 gain.
C) Futures contracts are voided if the price increases prior to expiration.
D) Nothing happens until the expiration of the contract.
Correct Answer:
Verified
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