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Elan Coil [88]
3 years ago
14

You have taken a short position in a futures contract on corn at $3.74 per bushel. Over the next 5 days (Day 1 to Day 5) the con

tract settled at 3.68, 3.71, 3.67, 3.64, and 3.61. Before you can reverse your position in the futures market you are notified on Day 5 to complete delivery. What will you receive on delivery per bushel and what is the net amount per bushel you receive in total
Business
1 answer:
eimsori [14]3 years ago
3 0

Answer:

Explanation:

In finance, short selling (also known as shorting or going short) is the practice of selling assets, that have been borrowed from a third party with the intention of buying identical assets back at a later date to return to the lender.

So in the given scenario the investor would be at lose of

Selling price = 3.74 per bushel

Purchase price = 3.61 per bushel

therefore lose of $ 0.13 per bushel you need to pay off.

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