Steps!

A soybean oil contract calls for delivery of 70,000 pounds. What happens to the seller of a soybean futures contract at 16 cents per pound if the futures price closes the next day at 18 cents per pound?

A. The contract is marked to market with a $1,200 loss

B. The contract is marked to market with a $1,400 gain

C. The contract is marked to market with a $1,400 loss

D. The contract is marked to market with a $1,200 gain