A Futures Contract Seller Is Obligated to Deliver 5,000 Bushels

question 88

Multiple Choice

A futures contract seller is obligated to deliver 5,000 bushels of soybeans for $12.00 per bushel at expiration.If soybean futures close at $12.10 the next day,the seller:

• A) has a profit of $500 thus far on the contract.
• B) has a loss of $500 thus far on the contract.
• C) has no profit or loss, but is still obligated to deliver 5,000 bushels at $12.00.
• D) will receive a check for $500 from the buyer of the contract.

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Definitions:

Cognitive Maps

Mental representations of physical locations, helping an individual to navigate and understand spatial environments.

Latent Learning

A form of learning that occurs without any obvious reinforcement or immediate demonstration of the learned behavior, becoming apparent only when there is motivation to demonstrate it.

Prosocial Behaviors

Actions intended to benefit others, including helping, sharing, donating, co-operating, and volunteering.

Preparedness

The state of being ready in advance for any potential emergency, crisis, or disaster.