On March 1,you Contract to Take Delivery of 1 Ounce

question 37

Multiple Choice

On March 1,you contract to take delivery of 1 ounce of gold for $495. The agreement is good for any day up to April 1. Throughout March,the price of gold hit a low of $425 and hit a high of $535. The price settled on March 31 at $505,and on April 1^st you settle your futures agreement at that price. Your net cash flow is:

• A) -$30.
• B) -$20.
• C) -$15.
• D) $10.
• E) $20.

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Definitions:

Thermistor

A type of resistor whose resistance varies significantly with temperature, widely used as temperature sensors.

Solenoid

A coil of wire designed to create a magnetic field when an electric current is passed through it, often used to control valves or relays.

Relay

An electrically operated device that mechanically switches electric circuits.

Final Control Element

A device that directly manipulates a process variable to achieve a desired change, such as a valve or a motor.