A Soybean Oil Contract Calls for Delivery of 60,000 Pounds

question 116

Multiple Choice

A soybean oil contract calls for delivery of 60,000 pounds.What happens to the seller of a soybean futures contract at 16 cents per pound if the futures price closes the next day at 18 cents per pound?

• A)The contract is marked to market with a $1,200 loss.
• B)The contract is marked to market with a $1,200 gain.
• C)Futures contracts are voided if price increases before expiration.
• D)Nothing happens until the expiration of the contract.

Understand the role of tender of delivery and payment in fulfilling sales contracts.

Recognize the implications of accepting non-conforming goods and the cure options available.

Identify the legal frameworks governing warranties, including the creation, exclusion, and breach of warranties.

Understand the significance of prefaces in textbooks for introducing new research and developments in the field of study.

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Definitions:

Cave Paintings

Prehistoric drawings or paintings found on cave walls, often depicting animals or humans, and considered significant in the study of human history and art.

Fossil Record

The accumulation of all discovered fossils and their placement in rock formations and sedimentary layers, which provides information about past life on Earth.

Early Human Populations

Groups of the earliest Homo sapiens and their predecessors, whose movements, adaptations, and cultural developments shaped human evolution.

Genetically Similar

Describes organisms that share a high degree of similarity in their genetic makeup or DNA sequences.