A Futures Contract Seller Is Obligated to Deliver 5,000 Bushels

question 90

Multiple Choice

A futures contract seller is obligated to deliver 5,000 bushels of soybeans for $5.00 per bushel at expiration.If soybean futures close at $5.10 the next day, the seller:

• A)has a profit of $500 thus far on the contract.
• B)has a loss of $500 thus far on the contract.
• C)has no profit or loss, but is still obligated to deliver 5,000 bushels at $5.00.
• D)will receive a cheque for $500 from the buyer of the contract.

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Definitions:

Unmanned Surveillance

The monitoring of areas, activities, or people using automated or remotely controlled equipment, such as drones or cameras.

Informational Constraint

Restrictions or limitations placed on data, such as access permissions or the structure of information.

Controlled Tests

Controlled tests are experiments or tests conducted under controlled conditions to isolate variables and determine specific outcomes.

Arguing from Ignorance

A fallacy that occurs when someone argues that a statement is true simply because it has not been proven false, or vice versa.