A Soybean Oil Contract Calls for Delivery of 60,000 Pounds

question 20

Multiple Choice

A soybean oil contract calls for delivery of 60,000 pounds. What happens to the seller of a soybean futures contract at 41 cents per pound if the futures price closes the next day at 42 cents per pound?

• A) The contract is marked to market with a $600 loss.
• B) The contract is marked to market with a $600 gain.
• C) Futures contracts are voided if the price increases prior to expiration.
• D)Nothing happens until the expiration of the contract.

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Definitions:

Performance Orientation

An aspect of organizational culture focusing on outcomes and results, emphasizing the achievement of goals and standards of excellence.

External Locus

A belief system where individuals perceive their successes or failures to be the result of external forces or the environment.

Control

The ability to direct, manage, or govern over oneself, other people, or situations to achieve a desired outcome.

Social Intelligence

The skill of comprehending and handling the nuances and interactions within personal connections efficiently.