You Have Taken a Short Position in a Futures Contract

question 40

Multiple Choice

You have taken a short position in a futures contract on corn at $2.60 per bushel.Over the next 5 days the contract settled at 2.52, 2.57, 2.62, 2.68, 2.70.Before you can reverse your position in the futures market on the fifth day you are notified to complete delivery.What will you receive on delivery and what is the net amount you receive in total?

• A)$2.60; $-0.10
• B)$2.60; $0.10
• C)$2.60; $2.70
• D)$2.70; $-0.10
• E)$2.70; $2.60

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Definitions:

Collective Bargaining

The process in which labor unions and employers negotiate the terms of employment, including wages, hours, and working conditions.

Termination

The process of ending an employee's contract or employment with an organization, possibly due to various reasons such as redundancy or misconduct.

Involuntary Dismissal

The forced termination of an employee's contract by the employer, often due to poor performance, misconduct, or organizational restructuring.

Resignation

The formal act of giving up or quitting one's office or position, often accompanied by a written notice.