You bought a futures contract for $2.60 per bushel and the contract ended at $2.70 after several days of trading with the following close prices each day: $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, .06, .02, -.03, -.08

Question

Quizplus · Accepted Answer

The mark to market sequence is calculated by finding the daily change in price from the previous day's close. Starting from $2.60, the sequence is: $2.52 (-.08), $2.57 (+.05), $2.62 (+.05), $2.68 (+.06), $2.70 (+.02).

You Bought a Futures Contract for $2