John and Tom Enter into a Futures Contract Where John

question 67

Multiple Choice

John and Tom enter into a futures contract where John agrees to deliver 500 crates of coffee to Tom one year from now. Tom agrees to pay a price of $200 per crate. A year from now, John and Tom find that the market price of coffee is $210 per crate. How might they make a cash settlement on the contract?

• A) John will offer $5,000 to Tom and deliver the 500 crates of coffee.
• B) Tom will offer $5,000 to Tom and deliver the 500 crates of coffee.
• C) John will offer $5,000 to Tom and not deliver any crates of coffee.
• D) Tom will offer $5,000 to John and not deliver any crates of coffee.

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Definitions:

IgM

Immunoglobulin M (IgM) is a type of antibody that is produced by the body's immune system in response to a foreign antigen.

IgD

IgD is a class of antibodies (immunoglobulins) that plays a crucial role in the immune system, mainly found on the surface of immature B cells.

Clonal Reproduction

A form of asexual reproduction where offspring arise from a single parent, inheriting the genes of that parent only, resulting in genetically identical individuals.

Plasma Cells

A type of white blood cell that produces antibodies to fight off infections.