You Sold One Wheat Future Contract at $3

question 48

Multiple Choice

You sold one wheat future contract at $3.04 per bushel. What would be your profit (loss) at maturity if the wheat spot price at that time were $2.98 per bushel? Assume the contract size is 5,000 bushels and there are no transactions costs.

• A) $30 profit
• B) $300 profit
• C) $300 loss
• D) $30 loss

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Definitions:

Short-term Memory

The capacity for holding a small amount of information in mind in an active, readily available state for a short period of time.

Limited Capacity

The concept that there is a finite amount of information or cognitive resources that an individual can process at one time.

Sensory Register

The part of the memory system where sensory information is stored for a very short period of time, almost instantaneously.

Fake Memory

A psychological phenomenon where a person recalls something that did not happen or recalls it differently from the way it actually happened.