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

question 38

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:

Gross National Income

The total domestic and foreign output claimed by residents of a country, consisting of GDP plus factor incomes earned by foreign residents, minus income earned in the domestic economy by nonresidents.

Net National Income

The total income of a nation after adding all payments from abroad and subtracting all payments to abroad, including depreciation.

Gross National Product

The total market value of all the goods and services produced by a country's residents and businesses over a specified period.

Net National Product

The total value of all goods and services produced by a country over a specific time period, minus depreciation.