Three Days Ago,you Entered into a Futures Contract to Sell

question 65

Multiple Choice

Three days ago,you entered into a futures contract to sell €62,500 at $1.50 per €.Over the past three days the contract has settled at $1.50,$1.52,and $1.54.How much have you made or lost?

• A)Lost $0.04 per € or $2,500
• B)Made $0.04 per € or $2,500
• C)Lost $0.06 per € or $3,750
• D)none of the options

Explain the concepts of project management, including completion within budget, scope, and time.

Understand the concept and importance of project management in achieving organizational objectives on time and within budget.

Identify and differentiate between essential components and characteristics of a project.

Grasp the fundamentals of Management by Objectives (MBO) and its implementation in organizational settings.

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Definitions:

American Put Option

A put option that gives the holder the right to sell an asset at a specified price anytime before the expiration date.

Exercise Price

The specified price on an option contract at which the option holder can buy or sell the underlying asset.

Netscape Stock

Represents the shares of Netscape Communications Corporation, a company once dominant in the web browser market before being acquired by AOL.

Futures

Agreements that enforce a commitment from the buyer to acquire, or from the seller to divest, an asset at a specific price and time decided beforehand.