The Price of a Corn Futures Contract Is $2

question 83

Multiple Choice

The price of a corn futures contract is $2.65 per bushel when the contract is issued and the commodity spot price is $2.55.When the contract expires,the two prices are identical.What principle is represented by this price behavior?

• A) Convergence
• B) Margin
• C) Basis
• D) Volatility

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Definitions:

Delegate Option

The process of assigning responsibility and authority to others to complete a clearly defined and agreed upon task while retaining ultimate responsibility for its success.

Vroom-Jago Leader-Participation Model

A decision-making framework that helps leaders choose the appropriate level of employee participation based on the situation.

Delegates to Group Members

The act of assigning responsibility or authority from a leader to members within the group, often to enhance involvement and efficiency.

Ivory

Hard, white material made from elephant tusks and used for carving and making various objects.