Silver Futures Contracts Are Based on 5,000 Troy Ounces and Are

question 60

Multiple Choice

Silver futures contracts are based on 5,000 troy ounces and are priced in dollars per troy ounce. Suppose a closing report displays these prices for a December contract: Open 17.435, High 17.450, Low 17.025, and Settle 17.119. What is the closing value for two December futures contracts on silver?

• A) $174,350
• B) $174,500
• C) $170,250
• D) $171,190
• E) $172,770

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Definitions:

Elasticities of Demand

Measures of how responsive the quantity demanded of a good or service is to a change in its price, income levels, or other factors.

Price Discriminate

The practice of selling the same product or service at different prices to different customers, based on the willingness or ability of the customers to pay.

Marginal Revenue Curve

A graph that shows the change in total revenue resulting from selling one additional unit of a product or service.

Price Discrimination

The strategy of selling the same product at different prices to different groups of consumers, based on their willingness to pay.