If the Spot Price and Futures Price on a Gold

question 52

Multiple Choice

If the spot price and futures price on a gold contract are $553 and $555,respectively,then theoretically the carrying cost should be equal to:

• A)$2 or more.
• B)between $0 and $2.
• C)cannot be determined.
• D)$2.

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Definitions:

Finding of Negligence

A determination in law that an individual or organization failed to act with care, resulting in harm to another party.

Last-Clear-Chance Doctrine

A doctrine used by a plaintiff when the defendant establishes contributory negligence. If the plaintiff can establish that the defendant had the last opportunity to avoid the accident, the plaintiff may still recover, despite being contributorily negligent.

Contributory Negligence

A legal doctrine indicating that if a party has contributed to their own injury or damages through their negligence, they may not be compensated for those injuries or damages.

Final Clear Opportunity

A concept in tort law, particularly in negligence, which refers to the last chance a defendant might have had to avoid causing harm to the plaintiff.