A wheat futures contract is quoted in cents per bushel with a contract unit of 5,000 bushels. If the contract is quoted at a settle price of 529, then the value of one wheat futures contract is
A) $529.
B) $2,645.
C) $26,450.
D) $9,451.80.

Question

Quizplus · Accepted Answer

The value of the contract is calculated by multiplying the settle price by the contract unit: 529 cents/bushel * 5,000 bushels = 2,645,000 cents, which is $26,450.

A Wheat Futures Contract Is Quoted in Cents Per Bushel