You Go Short Oil 10 Futures Contracts on NYMEX When

question 1

Multiple Choice

You go short oil 10 futures contracts on NYMEX when the futures price of oil is $79 a barrel and close out your position three days later at a futures price of $83 a barrel.One futures contract is for 1,000 barrels.Ignoring interest on the margin account,the futures trading has resulted in a

• A)Gain of $790,000.
• B)Loss of $4,000
• C)Gain of $4,000
• D)Loss of $40,000

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Definitions:

Long-Term Planning

Long-Term Planning involves setting goals and strategies that will be achieved over an extended period of time, considering future possibilities and uncertainties.

Practical Constraints

Limitations arising from real-world conditions that affect how a task or goal can be achieved.

Zeigarnik Effect

The psychological tendency to remember uncompleted or interrupted tasks better than completed tasks.

Goal Shielding

Refers to the cognitive process of protecting one’s primary goal from interference by secondary goals, ensuring focus and increasing the likelihood of achieving the primary objective.