A Speculator Takes a Long Position in a Futures Contract

question 7

Multiple Choice

A speculator takes a long position in a futures contract on a commodity on November 1,2012 to hedge an exposure on March 1,2013.The initial futures price is $60.On December 31,2012 the futures price is $61.On March 1,2013 it is $64.The contract is closed out on March 1,2013.What gain is recognized in the accounting year January 1 to December 31,2013? Each contract is on 1000 units of the commodity.

• A) $0
• B) $3,000
• C) $1,000
• D) $4,000

Comprehend the importance and application of regression analysis and trend forecasting in HR planning.

Identify key operational indices for ratio analysis in HR demand forecasting.

Recognize the Delphi technique's unique features, advantages, and disadvantages for gathering expert opinions.

Understand the purpose and process of the nominal group technique, including its step-by-step implementation.

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Definitions:

Theorist

An individual who develops theories in a particular field of study or area of expertise.

Self-concept

An individual's perception of themselves, consisting of beliefs about one's abilities, traits, and values.

Cognitive Approach

An approach in psychology that emphasizes internal mental processes as the key to understanding human behavior.

Daily Mood

The emotional state or prevailing emotional tone experienced on a day-to-day basis.