QUESTIONS 91 THROUGH 96 RELATE TO DERIVATIVE INVESTMENTS.
93. A trader takes a long position in 40 futures contracts on Day 1. The futures have a daily price
limit of $5 and closes with a settlement price of $106. On Day 2, the futures trade at $111 and the
bid and offer move to $113 and $115, respectively. The futures price remains at these price levels
until the market closes. The marked-to-market amount the trader receives in his account at the end
of Day 2 is closest to:
A.
$200.
B.
$280.
C.
$320.