The size of one soybean futures contract on the Chicago Board of Trade is

The size of one soybean futures contract on the Chicago Board of Trade is

• A. 5,000 bu.
• B. 1,000 bu.
• C. 50,000 bu.
• D. 500 bu.

Answer: (A)

Contracts in futures specify a standard amount of the commodity that each contract covers. For soybean futures on the Chicago Board of Trade, that standard size is 5,000 bushels. This uniform quantity makes pricing, margin, and delivery terms consistent across all traders. The contract’s value depends on the price per bushel, so you multiply the price by 5,000 to get the dollar value of one contract. For example, at a price of $X per bushel, one contract is 5,000 × $X, and a one-cent per bushel move changes the contract value by 5,000 × $0.01 = $50. The other listed sizes don’t match the standardized contract used for this market.

Contracts in futures specify a standard amount of the commodity that each contract covers. For soybean futures on the Chicago Board of Trade, that standard size is 5,000 bushels. This uniform quantity makes pricing, margin, and delivery terms consistent across all traders. The contract’s value depends on the price per bushel, so you multiply the price by 5,000 to get the dollar value of one contract. For example, at a price of $X per bushel, one contract is 5,000 × $X, and a one-cent per bushel move changes the contract value by 5,000 × $0.01 = $50. The other listed sizes don’t match the standardized contract used for this market.