You sold a futures contract on corn at a futures price of 331, and at the time of expiration, the price was 343. What was your profit or loss?
A) −$12.00
B) $12.00
C) −$600
D) $600

Question

Quizplus · Accepted Answer

Since you sold the futures contract, you would profit if the price went down and lose if the price went up. The price went up from 331 to 343, a difference of 12. Futures contracts for commodities like corn are typically for 5,000 bushels, so the loss is 12 (the price increase) times 5,000 (the number of bushels), which equals $600. Therefore, it's a loss of $600.

You Sold a Futures Contract on Corn at a Futures