On March 1, You Contract to Take Delivery of 1

question 39

Multiple Choice

On March 1, you contract to take delivery of 1 ounce of gold for £415.The agreement is good for any day up to April 1.Throughout March, the price of gold hit a low of £385 and hit a high of £435.The
Price settled on March 31 at £420, and on April 1st you settle your futures agreement at that price.
Your net cash flow is:

• A)£-30.
• B)£-20.
• C)£-15.
• D)£ 5.
• E)£20.

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Definitions:

Reverse Polarity

A condition where electrical connections are made with reverse orientation, leading to potential damage or malfunction in electronic equipment.

Electrical System

The network of electrical components and wiring in a vehicle or machinery that generates, stores, and distributes electricity for various functions.

Diode Bridge

A circuit component consisting of four diodes arranged in a square so that when AC power is applied, it is converted to DC power.