There Is a Futures Contract for the Purchase of 100

question 108

Multiple Choice

There is a futures contract for the purchase of 100 bushels of wheat at $2.50 per bushel.If the market price of wheat increases to $3.00 per bushel:

• A)The buyer (long position) needs to transfer $50 to the seller (short position).
• B)The seller (short position) needs to transfer $50 to the buyer (long position).
• C)Nothing happens since with a futures contract all payments are made at the settlement date.
• D)Nothing happens since marked to market adjustments only take place when the market price falls below the contract price.

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Definitions:

Gluteus Medius

A muscle located on the outer surface of the ilium, involved in the rotation and abduction of the thigh.

Ball and Socket

A type of synovial joint that allows for movement in almost any direction, found in the shoulder and hip.

Ellipsoidal

Shaped like an ellipse, often referring to an ellipsoidal joint in the body that allows movement in two planes.

Saddle

In anatomy, refers to a saddle-shaped joint that allows movement in several planes, such as the thumb joint.