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You Purchased One Corn Future Contract at $2

Question 72

Multiple Choice

You purchased one corn future contract at $2.29 per bushel.What would be your profit (loss) at maturity if the corn spot price at that time were $2.10 per bushel? Assume the contract size is 5,000 ounces and there are no transactions costs.


A) $950 profit
B) $95 profit
C) $950 loss
D) $95 loss
E) none of the above.

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