Suppose you buy a futures contract at $150.If the futures price changes to $147,what is its value an instant before it is marked-to-market?
A)0
B)$3
C)-$3
D)it is impossible to tell
E)none of the above

Question

Quizplus · Accepted Answer

The value of the futures contract is based on the difference between the entry price and the current price. In this case, the price has decreased by $3, so the value of the contract has decreased by $3 as well, resulting in a value of -$3.

Suppose You Buy a Futures Contract at $150