On March 1,you Contract to Take Delivery of 1 Ounce

question 26

Multiple Choice

On March 1,you contract to take delivery of 1 ounce of gold for £415.The agreement is good for any day up to April 1.Throughout March,the price of gold hit a low of £385 and hit a high of £435.The price settled on March 31 at £420,and on April 1st you settle your futures agreement at that price.Your net cash flow is:

• A)£-30.
• B)£-20.
• C)£-15.
• D)£ 5.
• E)£20.

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Definitions:

Box-and-Whisker Plots

A graphical representation of data that displays the distribution, median, quartiles, and outliers of a dataset.

Key Statistics

Important or crucial numerical information that helps summarize, analyze, or interpret data or phenomena.

Data Set

A collection of related sets of information that is composed of separate elements but can be manipulated as a unit by a computer.

Chebyshev's Theorem

A statistical theorem stating that for any real-valued random variable, a minimum proportion of values fall within a certain number of standard deviations from the mean, regardless of the shape of the distribution.