If an Individual Who Has Entered a Futures Contract to Buy

question 26

Multiple Choice

If an individual who has entered a futures contract to buy one ounce of gold for $553 decides to reverse their position when the futures price is $555,they will:

• A)effectively now have two positions with the exchange.
• B)will still have one contract with the exchange.
• C)make a profit of $2.
• D)make a loss of $2.

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Definitions:

Amino Acids

Organic compounds that combine to form proteins and are important in biology.

Steroidal

Pertaining to steroids, a large class of organic compounds with a characteristic molecular structure that includes many hormones, alkaloids, and vitamins.

Cell Membranes

The semipermeable membrane surrounding the cytoplasm of a cell, responsible for controlling the movement of substances in and out of the cell.

Hormones

Signaling molecules released by glands which travel through the bloodstream to tissues or organs to regulate physiology and behavior.