An Investor Sells a Futures Contract an Asset When the Futures

question 5

Multiple Choice

An investor sells a futures contract an asset when the futures price is $1,500.Each contract is on 100 units of the asset.The contract is closed out when the futures price is $1,540.Which of the following is true

• A) The investor has made a gain of $4,000
• B) The investor has made a loss of $4,000
• C) The investor has made a gain of $2,000
• D) The investor has made a loss of $2,000

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Definitions:

Team Effect

The impact or outcome resulting from the collective effort and dynamics of a group working together towards a common goal.

Shared Mental Model

A collective understanding among team members regarding their tasks, roles, and the overall environment that enhances coordination and performance.

Accurate

Refers to the correctness, precision, and freedom from error or mistakes in information, measurements, or outcomes.

Member Skills

Refers to the abilities and competencies that individual members of a group or organization possess, contributing to the collective effectiveness.