You Have Taken a Short Position in a Futures Contract

question 28

Multiple Choice

You have taken a short position in a futures contract on corn at £2.60 per bushel.Over the next 5 days the contract settled at 2.52,2.57,2.62,2.68,2.70.Before you can reverse your position in the futures market on the fifth day you are notified to accept delivery.What will you receive on delivery and what is the net amount you receive in total?

• A)£2.60; £-0.10
• B)£2.60; £0.10
• C)£2.60; £2.70
• D)£2.70; £-0.10
• E)£2.70; £2.60

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Definitions:

Forebrain

The anterior part of the brain that includes the cerebrum and structures such as the thalamus and hypothalamus, involved in complex behavioral and cognitive processes.

Thalamus

A crucial brain structure involved in relaying sensory and motor signals to the cerebral cortex, and in regulating consciousness, sleep, and alertness.

Muscles

Soft tissues found in most animals that produce force and motion through contraction and are essential for bodily movement, posture, and balance.

Cerebellum

A region of the brain that plays a significant role in motor control, and is also involved in cognitive functions such as attention and language.