Assume the futures contracts on silver are quoted in dollars per troy ounce with a contract size of 5,000 troy ounces.Contract quotes for the day included an open value of $16.650,a high of $16.660,a low of $16.620,and a settle of $16.645.If you purchased three contracts at the closing price what was the dollar cost of your purchase ignoring all transaction costs?
A)$83,250
B)$82,500
C)$249,675
D)$249,750
E)$83,225

Question

Quizplus · Accepted Answer

The cost is calculated as the closing price ($16.645) multiplied by the contract size (5,000 troy ounces) and the number of contracts (3). So, $16.645 * 5,000 * 3 = $249,675.

Assume the Futures Contracts on Silver Are Quoted in Dollars