Question

A corn futures contract closed yesterday at a price of $2.40 a bushel. The maximum daily price range is $0.40 and the daily price limit is $0.20. Therefore, the: Question 1 options: a) highest closing price for today is $2.80 a bushel. b) most the price can fluctuate today is $0.20 a bushel. c) minimum change in the price today is $0.20 a bushel. d) lowest closing price for today is $2.20 a bushel.

Answer 1

Answer:

D -lowest closing price for today is $2.20 a bushel.

Explanation:

Range refers to the difference between the highest and lowest value of any variable for a given time period. The daily price limit refers to the maximum increase in price or the price decline that is allowed for a futures contract in one given trading session relative to the previous day's settlement price.

With this in mind, the right option is  

D -lowest closing price for today is $2.20 a bushel.

This is worked out as $2.40 - $0.20 = $2.20