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:

Equilibrium GDP

The level of Gross Domestic Product at which total production equals total spending, indicating a state of economic balance without tendency to change.

Full-employment Level

signifies an economic condition where all who are able and willing to work at current wage rates have employment opportunities.

National Debt

The entirety of funds that a country's governmental body has taken on as debt through several mechanisms.

Budget Surpluses

An excess of income or revenues over expenditures in a given period, meaning the government or organization has more money than it spends.