You sold a futures contract on oats at a futures price of 233.75, and at the time of expiration, the price was 261.25. What was your profit or loss?
A) $1375.00
B) −$1375.00
C) −$27.50
D) $27.50

Question

Quizplus · Accepted Answer

The loss is calculated by subtracting the selling price from the buying price (261.25 - 233.75 = 27.50). Since it's a futures contract, and the standard size for oats futures is 5,000 bushels, the total loss is 27.50 * 5,000 = $1375.00. The negative sign indicates a loss.

You Sold a Futures Contract on Oats at a Futures