If a Trader Holding a Long Position in Corn Futures

question 7

Multiple Choice

If a trader holding a long position in corn futures fails to meet the obligations of a futures contract, the party that is hurt by the failure is

• A)the offsetting short trader.
• B)the corn farmer.
• C)the clearinghouse.
• D)the broker.

Understand how to avoid high fees and unfair practices in financial borrowing.

Understand different types of savings plans and their benefits.

Comprehend the concepts of compounding interest and how it affects savings.

Grasp the taxation and benefits of U.S. Savings Bonds.

---

Definitions:

Right

In finance, typically refers to a contractual entitlement to purchase additional shares at a specified price before a certain date, often associated with share issuance.

Obligation

A legal or financial duty or responsibility to make payments, fulfill contracts, or otherwise perform as agreed.

Forward Contract

A customized contract between two parties to buy or sell an asset at a specified price on a future date, used to hedge or speculate on the price movement of the underlying asset.

Income Statement

A financial statement that shows a company's revenues, expenses, and profits over a specific period of time.