On March 1, You Contract to Take Delivery of 1

question 17

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 1^st you settle your futures agreement at that price. Your net cash flow is:

• A) -$30.00.
• B) $20.00.
• C) $5.00.
• D) -$15.00.
• E) -$20.00.

---

Definitions:

Lawrence Kohlberg

An American psychologist best known for his theory of stages of moral development.

Cognitive Structures

Mental frameworks that individuals use to organize and interpret information, guiding how they perceive the world.

Assimilation

In psychology, a cognitive process where individuals integrate new information into existing frameworks or schemas.

Piaget's Theory

A theory of cognitive development that describes how children's thinking evolves in stages as they interact with their environment.