A coal distributor buys a coal futures contract that requires acceptance of 46,000 tons of coal at £1.26 per ton. How is the account marked to market if coal futures close the next day at £1.24? A. A loss of £920 is posted to the account. B. A gain of £920 is posted to the account. C. A loss of £9,200 is posted to the account. D. A gain of £9,200 is posted to the account.
A coal distributor buys a coal futures contract that requires acceptance of 46,000 tons of coal at £1.26 per ton. How is the account marked to market if coal futures close the next day at £1.24? A. A loss of £920 is posted to the account. B. A gain of £920 is posted to the account. C. A loss of £9,200 is posted to the account. D. A gain of £9,200 is posted to the account.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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2. A coal distributor buys a coal futures contract that requires acceptance of 46,000 tons of coal at £1.26 per ton. How is the account marked to market if coal futures close the next day at £1.24?
| A. |
A loss of £920 is posted to the account. |
|
| B. |
A gain of £920 is posted to the account. |
|
| C. |
A loss of £9,200 is posted to the account. |
|
| D. |
A gain of £9,200 is posted to the account. |
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