On the Day of Delivery

question 65

Multiple Choice

On the day of delivery

• A)the spot price will equal the futures price.
• B)the spot price will be greater than the futures price by an amount equal to the current interest rate times the futures price.
• C)the futures price will be greater than the spot price by an amount equal to the current interest rate times the spot price.
• D)there is no necessary relation between the spot price and the futures price.

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Definitions:

Title to Merchandise

The legal right of ownership of goods, indicating that the holder has the right to control the use and disposition of the items.

Broker

An individual or firm that acts as an intermediary between buyers and sellers, typically earning a commission for facilitating transactions.

Suitable Space

An area or location that meets the required specifications and is appropriate for a particular purpose or activity.

Kansas City

A major city in the state of Missouri known for its jazz heritage, barbecue cuisine, and cultural landmarks.