Question: On December 1 , 2 0 2 4 , I purchased 5 March 2 0 2 5 coffee futures contracts at 1 7 . In

On December 1,2024, I purchased 5 March 2025 coffee futures contracts at 17. In late March of 2025, I sold 2 of the contracts at 41 and let the remaining 3 contracts expire. What is the end result of this transaction? A. I made $12,375 on my futures contract trade. I am also obligated to deliver 37,500 pounds of coffee to the coffee exchange and the exchnage is obligated to pay me $9,000 for this coffee. B. I made $30,375 on my futures contract trade. I am also obligated to take delivery of 75,000 pounds of coffee from the coffee exchange and I am obligated to pay the exchange $14,250 for this coffee. C. I made $18,000 on my futures contract trade. I am also obligated to take delivery of 112,500 pounds of coffee from the coffee exchange and I am obligated to pay the exchange $19,125 for this coffee. D. I made $30,375 on my futures contract trade. I am also obligated to take delivery of 37,500 pounds of coffee from the coffee exchange and I am obligated to pay the exchange $14,250 for this coffee.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!