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Suppose you sold one contract of Corn futures at $4 per bushel (5000 bushels per contract). The futures prices in the next four days were
Suppose you sold one contract of Corn futures at $4 per bushel (5000 bushels per contract). The futures prices in the next four days were $4.01, $3.98, $3.99 and $4.02. What is your mark-to market sequence of cash flow per bushel?
a) -0.01, 0.03, -0.01, -0.03
b) 0.01, -0.03, 0.01, 0.03
c) -0.01, 0.02, 0.01, -0.02
d) 0.01, -0.02, -0.01,0.02
e) 0.10, 0.06, 0.02, -0.03, -0.08
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