Suppose You Purchase a September Cocoa Futures Contract at the Last

question 45

Multiple Choice

Suppose you purchase a September cocoa futures contract at the last price of the day as shown in the table below.What will be your profit or loss on this contract if the price turns out to be $1,707 per metric ton at expiration?
Futures:
Cocoa - 10 metric tons,$ per ton $$\begin{array} { | r | r | r | r | r | r | r | r | } \hline & \text { OPEN } & \text { HIGH } & \text { LOW } & \text { SETTLE } & \text { CHG } & \begin{array} { r } \text { LIFETIME } \\\text { HIGH }\end{array} & \begin{array} { r } \text { LIFETIME } \\\text { LOW }\end{array} \\\hline \text { July } & 1,680 & 1,703 & 1,687 & 1,691 & - 1 & 1,782 & 1,390 \\\hline \text { Sept } & 1,692 & 1,704 & 1,688 & 1,696 & - 6 & 1,912 & 1,410 \\\hline\end{array}$$

• A)$30
• B)$110
• C)$150
• D)$1,100
• E)$1,500

Comprehend the benefits and considerations of outsourcing logistics functions.

Identify common distortions in supply chain information and their impacts.

Apply criteria-weighting for vendor selection and calculate composite scores.

Analyze the financial impacts of supply chain savings versus sales increases.

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Definitions:

Payoff Asymmetry Hypothesis

A theory suggesting that differences in the benefits or costs associated with a particular behavior can influence the evolution of sex-specific strategies.

Territory

An area that an animal or group of animals consistently defends against conspecifics or sometimes predators, often for resources or mating rights.

Economic Defensibility

The concept in socioecology that a resource can be defended against competitors at a cost that is less than or equal to its value.

Arbitrary Contest Resolution

A method of determining the outcome of a conflict among animals or individuals using signals or behaviors that do not directly relate to the physical strength or dominance of the participants.