Question

The futures contract on silver is based on 5,000 troy ounces and is priced in dollars and cents per troy ounce. Assume today's report reflects these prices for the June contract: Open 19.435, High 19.450, Low 19.025, Settle 19.119, and Chg .369. What is the price per troy ounce that will be used for today's marking-to-market for this contract?A) $19.435B) $19.450C) $19.025D) $19.081E) $19.119

Answer 1

Answer:

$19.119

Explanation:

Settle price is used.

The settlement price also called settle price, is the average price at which a contract trades. This price is calculated at the opening of the trading day, and also calculated again at the closeing of the trading day.

The settlement price is of utmost important because it is a determining factor as to whether a trader is required in the posting of additional margins or not