The Seller of a Pork Bellies Futures Contract at

question 38

Multiple Choice

The seller of a pork bellies futures contract at $.41 per pound noted that the closing price of pork bellies was $0.44 today.What will happen to this contract, which requires delivery of 40,000 of pork bellies at expiration?

• A)A loss of $400 is posted to the account
• B)A gain of $400 is posted to the account
• C)A loss of $1,200 is posted to the account
• D)A gain of $1,200 is posted to the account

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Definitions:

Production Efficiency

A state in which a system or process operates at the maximum capacity, using the least amount of resources and time, without compromising the quality of its output.

Selective Service Act

Law passed in 1917 to quickly increase enlistment in the army for the United States’ entry into World War I; required men to register with the draft.

Enlistments

The act of voluntarily joining the armed forces or a similar organization, often associated with military service.

Soldiers

Individuals serving in an army, whether voluntarily or through conscription, who undergo military training and participate in warfare or peacekeeping missions.