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.

---

Definitions:

Diagnosis

The identification of the nature of an illness or other problem by examination of the symptoms.

Validity

The extent to which a test, tool, or research study measures what it purports to measure.

Mental Disorders

A broad category of conditions affecting mood, thinking, and behavior that impair normal functioning.

Reactivity

The tendency of individuals to modify their behavior when they are aware they are being observed.