Yesterday,you Entered into a Futures Contract to Buy €62,500 at $1.50

question 71

Multiple Choice

Yesterday,you entered into a futures contract to buy €62,500 at $1.50 per €.Suppose the futures price closes today at $1.46.How much have you made/lost?

• A)Depends on your margin balance.
• B)You have made $2,500.00.
• C)You have lost $2,500.00.
• D)You have neither made nor lost money,yet.

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Definitions:

Irrevocable

Incapable of being taken back, undone, or cancelled, often used in the context of certain contracts, trusts, or offers.

Implied Warranties

Legal guarantees that are not explicitly stated but are assumed in transactions, indicating that a product will meet certain quality and reliability standards.

Assignor

The party in a contract who transfers their rights or interests in a property or contract to another party, known as the assignee.

Assignment

The transfer of rights, duties, or property from one party to another, often used in contexts involving contracts, leases, and various forms of personal and real property.