Uptown Jewelers Purchased a Futures Contract on 200 Ounces of Gold

question 32

Multiple Choice

Uptown Jewelers purchased a futures contract on 200 ounces of gold to be exchanged 3-months from now.As the contract holder,Uptown Jewelers:

• A)has the right, but not the obligation, to purchase 200 ounces of gold 3 months from now.
• B)has the obligation to purchase 200 ounces of gold at the market price three months from now.
• C)has an obligation to buy 200 ounces of gold but only if the price of gold increases within the next 3 months.
• D)is expecting the price of gold to decrease and thus is locking in a selling price.
• E)will profit if the price of gold is higher three months from now.

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Definitions:

Moral Consequences

The outcomes of actions that are evaluated based on their rightness or wrongness according to ethical principles.

Bounded Ethicality

The concept that cognitive biases and organizational contexts can limit individuals’ ability to make ethically optimal decisions.

Organization's Ethical Standards

Comprise the principles, values, and norms that guide the behavior and decisions within an organization and among its employees.

Disclosure

The act of making new or secret information known or a process in psychology where an individual shares their personal, often confidential, information with others.