If you bought a futures contract for $2.60 per bushel and the contract ended at $2.70 after several days of trading of $2.52, $2.57, $2.62, $2.68, and $2.70. What would the mark to market sequence be?
A) -.08, .05, .05, .06, .02
B) .08, -.05, -.05, -.06, -.02
C) .08, .03, -.02, -.06, -.10
D) -.08, -.03, .02, .06, .10
E) .10

Question

Quizplus · Accepted Answer

The mark to market sequence represents the daily settlement changes in the futures contract price from the original purchase price. Starting with a purchase price of $2.60, the sequence of trading prices was $2.52, $2.57, $2.62, $2.68, and $2.70. The changes from the original price are: -$0.08 (2.60 to 2.52), +$0.05 (2.52 to 2.57), +$0.05 (2.57 to 2.62), +$0.06 (2.62 to 2.68), and +$0.02 (2.68 to 2.70).

If You Bought a Futures Contract for $2