Joseph Bought a Contract for Future Delivery of 5000 Bushels

question 109

Multiple Choice

Joseph bought a contract for future delivery of 5000 bushels of corn at $2.80 per bushel and sold a later contract at $2.90 a bushel. A month later, corn prices were rising and Joseph sold his long contract for $3.10 per bushel and covered his short by purchasing the same contract for $3.25 per bushel. Ignoring trading costs, Joseph

• A) broke even.
• B) made $500.
• C) lost $750.
• D) made $750.

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Definitions:

Spanish Exploration

The period during the late 15th and early 16th centuries when Spain embarked on voyages to the Americas, Pacific, and other parts of the world, leading to colonization and the spread of Spanish culture and influence.

Disease

A disorder of structure or function in a human, animal, or plant, especially one that produces specific symptoms or affects a specific location and is not simply a direct result of physical injury.

Florida

A state located in the southeastern region of the United States, known for its warm climate, beaches, and as a popular tourist destination.

Bartolomé de Las Casas

A 16th-century Spanish Dominican friar, historian, and missionary who advocated for the rights of Indigenous peoples in the Americas.