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:

Participatory Action Research

A research approach that involves stakeholders or community members in the research process, aiming to generate knowledge and action for social change.

Process Agreement

An understanding or accord between social worker and client regarding the methods, goals, and expectations of the social work intervention.

Person Acclimated

An individual who has become accustomed or adapted to a new environment, situation, or set of conditions.

Vocal Member

An individual within a group who is more outspoken or active in expressing opinions and influencing group dynamics.