Fred Purchased a Futures Contract on Live Cattle Through Broker

question 2

Multiple Choice

Fred purchased a futures contract on live cattle through Broker A. After purchasing the contract, Fred moved his investments to Broker B. During the transition, the contract on the cattle was forgotten. When the delivery date for the futures contract arrived,

• A) Fred took delivery of live cattle.
• B) Broker A had to pay for the cattle so that they would not be delivered to Fred.
• C) the futures contract was not exercised.
• D) the cattle were not delivered because Fred did not ask for them.

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Definitions:

Monocots

Plants that have a single embryonic leaf, or cotyledon, in their seeds, distinguishing them from dicots.

Cotyledons

The embryonic leaf in seed-bearing plants, one or more of which are the first to appear from a germinating seed.

Eudicots

A major group of flowering plants that are characterized by having two seed leaves, or cotyledons, upon germination.

Transmission Media

The physical pathways that connect computers, other devices, and people on a network, used to transport communication signals.